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Chapter 1
Executive Summary

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1..EXECUTIVE SUMMARY

Coca-Cola, the product that has given the world its best-known
taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola
Company is the world’s leading manufacturer, marketer and
distributor of non-alcoholic beverage concentrates and syrups,
used to produce nearly 400 beverage brands. It sells beverage
concentrates and syrups to bottling and canning operators,
distributors, fountain retailers and fountain wholesalers. Coca-Cola
was first introduced by John Syth Pemberton, a pharmacist, in the
year 1886 in Atlanta, Georgia when he concocted caramel-colored
syrup in a three legged brass kettle in his backyard. He first
“distributed” the product by carrying it in a jug down the street to
Jacob’s Pharmacy and customers bought the drink for five cents at
the soda fountain. Carbonated water was teamed with the new
syrup, whether by accident or otherwise, producing a drink that
was proclaimed “delicious and refreshing”, a theme that continues
to echo today wherever Coca-Cola is enjoyed. Coca-Cola
originated as a soda fountain beverage in 1886 selling for five
cents a glass. Early growth was impressive, but it was only when a
strong bottling system developed that Coca-Cola became the
world-famous brand it is today. CocaCola was the leading soft
drink brand in India until 1977, when it left rather than reveal its
formula to the Government and reduce its equity stake as required
under the Foreign Regulation Act (FERA) which governed the
operations of foreign companies in India. In the new liberalized and
deregulated environment in 1993, Coca-Cola made its re-entry into
India through its 100% owned subsidiary, HCCBPL, the Indian

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bottling arm of the Coca-Cola Company. The main objective of this


study lies in understanding the organization and studying and
understanding the consumers’ perception and opinion about the
latest product, Minute Maid Pulpy Orange, introduced into India, by
the Coca-Cola Company. A consumer sampling involving 5.5 lakh
people was conducted in a span of 30 days across major cities in
order to give the product the required marketing push and to
recognize the prospective consumers and their opinion in order to
develop and market the product in a better way in the near future.
The methodology used in studying and understanding the
perceived views of consumers towards the product was
‘SAMPLING’. The findings of the activity have been drawn out in
form of graphs and suggestions have been offered there from.

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CHAPTER -2

OBJECTIVES OF THE STUDY

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2..OBJECTIVES OF STUDY

• The find out the present status of Thumps Up, Coca-Cola,


Fanta, Limca & Maaza in the retail outlets.

• To study the distribution and marketing strategy of


thumps up, coca-cola, fanta, limca, and maaza- the
major competitor in this category.
• To study the consumers preferences for Coca Cola.

• To know which brand’s advertisement mostly people have


seen.

• To know the reason to buy cola drinks.

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CHAPTER -3

RESEARCH METHODOLOGY

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3..RESEARCH METHODOLOGY

This research involved a study, which was descriptive as well as


explorative in nature it basically aims at gathering data about how
the coca-cola scheme playing in the mind of shopkeepers &
consumer.

METHODS OF DATA COLLECTION

THERE ARE TWO TYPES OF DATA


1. Primary data
2. Secondary data

1. Primary data collection: Primary data can be collected by


three methods.
a) Observation
b) Experiment
c) Surveys

But here, only surveys method of data collection is preferred which


is very suitable to reach the researcher motto.

A. Research instrument: Printed Questionnaire was used as the


research instrument to collect the required information.
B. Area of surveys: The survey was conducted in different
location of navi mumbai city.

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Sampling plan: sampling plan consists of

I.Sampling unit: The retailer of Grocery shop, general store, betel


shop, and school and colleges student was selected from different
places of NAVI MUMBAI.

II. Sampling size: 80

Were 20 are for retail outlet and


60 are for consumers..

III. Sampling procedure: Simple random sampling procedure


was followed.

IV. Sampling method: Data were collected by retailer survey.


The retailers are directly contacted and interviewed at their retail
counter and with the customer.

2) Secondary data collection:

As secondary data were not available with shopkeepers as well


as stockiest, so these were collected from company records,
books and websites.

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CHAPTER 4

REVIEW OF LITERATURE

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MARKETING STRATEGY

 Service Quality and Customer Value

--Lester W Johnson and Sean Leonard

The concept of customer value has its roots in the quality


movement, work done in the area of developing "customer
focused" organizations, and in the marketing concept of "market
orientation". This has seen many companies move away from a
production orientation and from the 1980s' fascination with
mergers and acquisitions aimed to deliver market share, to
concepts based on relationship marketing, customer loyalty and
retention, brand equity, and customer equity. The shift has
fundamentally been a move from "product focus" to "customer
focus" and a related shift from "product quality" to "service quality".
While the research still follows different lines, there are useful
lessons to be learned in areas where there is strong agreement.
This article discusses what the past ten years have taught us
about this shift.

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 Customizing Price Discounts: A Value-Based Approach


to Marketing Promotions

-- Joseph Johnson

Price discount is an important criterion to attract customers


towards a particular brand. This article describes how to develop a
model that allows firms to make customized temporal discounts.
The model enables managers to decide to whom, when, and how
much discount should be given to a brand in a constrained budget

 Customer Next: Marketing to the Aged


---Sarika Tondon

The world is aging rapidly. The percentage of people in the 60 +


age group is projected to increase from 10% in 1999 to 22% by
2050. The total population in this age group will increase more
than three times over these five decades. Unlike in the past, the
aged population, particularly in the developed countries and even
those in the upper socioeconomic classes in the developing
countries, are no longer dependent on others financially, physically
or emotionally. Many of the elderly are well-to-do, are in fairly good
health (thanks to improved medical facilities) and also have a zest
to enjoy life. This has provided immense opportunities to
marketers, particularly those operating in the fields of healthcare
and health foods; physical fitness and exercise; travel and leisure;
and also media and entertainment, to cash in on this segment's
needs.

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 Some New Thoughts on Marketing Strategy


---S N Ghosal

Liberalization and globalization have opened up opportunities to


develop competitive edge and innovative strategies to excel and
survive amidst the fire of intense competition. While the Blue
Ocean strategy offers one possible alternative, the author
suggests a new development strategy to minimize the risks
associated with adopting purely a Blue Ocean approach.

 Competitive Branding Strategies


--Linda Fisher

The article illustrates the five keys that businesses must implement
to be successful: Creating a brand strategy, managing a brand
image through marketing, differentiating from competitors, creating
added value perception for the service marketed and maintaining a
client base while attracting new clients. All these together leverage
the potential of a firm to overcome perils in a competitive economy.

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 Taste or health: A study on consumer acceptance of


cola drinks
This study examined the relative contributions of taste and health
considerations on consumer liking and purchase intent of cola
drinks. Eight types of commercial cola drinks were evaluated by
305 adult consumers who also completed a brief questionnaire on
food habits. Data were analyzed using factor analysis. Results
revealed that purchase intent of cola drinks was strongly related to
degree of liking and to several key sensory attributes including
saltiness, drinks flavor and greasiness. These variables emerged
as the first factor in the analysis, suggesting that consumers
perceive these characteristics as being most important in their
choice of cola drinks. Factor 2 described a health dimension and
was related to respondents' attitudes toward fat in the diet. Factor
3 comprised two remaining sensory attributes (color and
crunchiness), which apparently were of minor importance to the
respondents. These data suggest that in spite of current concern
about reducing dietary fat, health remains secondary to taste in the
selection of cola drinks for consumers in this population.

Source-Beverly J. Tepper and Amy C. Trail Journal of Food


Science and Technology, 15 September 1998

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CHAPTER 5

INTRODUCTION TO MARKETING STRTATEGY

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5.1 MARKETING

What exactly is marketing? What role does it play in our lives and
of what importance is it to us? To me in the beginning it seemed
like a complicated topic and to the others a dry one, but as I read
on this topic I found that whether we like it or not, we are all a part
of this big game. We cannot escape from it, and at present it is one
of the most happening things in the business industry. We are
usually ignorant about how a product comes to us; we don't give
much thought to it. We merely go to a shop buy the product and
use it. If we study closely we would realize that there's a long
process before a product can be manufactured and after
manufacturing how it finally reaches us. In this talk I would like to
give everyone here a broad idea of how marketing works.
So let's begin with the definition of marketing:

Marketing can be defined as a system of integrated business


activities designed to develop strategies and plans to the
satisfaction of the customer wants.
This can widely be understood as the activities that are required to
get the product in the most efficient way to the customer. This
could lead to the common misconception that marketing means to
sell the product by clever ways or sell them anyhow or at the most
the art of selling. But actually it is something more than that; it is
the art of making the right thing and getting it to the right people in
the right way or the most efficient way. By the end of this talk, once
the areas it deals with are covered, the importance of marketing
will become obvious

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5.2 MARKETING MANAGEMENT

Marketing management is the process by which marketing works.


They have certain core concepts to study and follow: 1. Needs and
demands 2.Products 3.Value, cost and satisfaction 4.Exchange
and relationship 5.Market 6.Marketers and marketing.
Let's have a study of each of these concepts briefly.

1. NEEDS AND DEMANDS - this basically implies the consumer


demands. Even before launching a product it is very important to
do a market study and a consumer survey. In big cites where lots
of products and goods are consumed, there are people who go a
door to door inquiring about the products they use. They ask
questions like what brand soap or toothpaste do they use and why.
Supposing on being asked which brand toothpaste they use, the
survey could also contain which color (white or blue) toothpaste
they use. This is called market survey. According to the
information they receive, the company makes appropriate
decisions to change or improve a product.

The needs and demands of products essentially depend on the


place, nature and living style of the people. Like what can be
required in India may not be required in America, and what is
required in America cannot be afforded by Indians.
So every market works differently according to the needs and
demands of its people. The ways to find out customer demands
are either through practical questioning or through the study of
sales. Study of sales is done by plainly observing the volume of a
certain product sold (white toothpaste or blue toothpaste) over the

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past weeks or months and accordingly increase or decrease the


production of the certain product.
The better a company understands its people, their psychology,
their financial capacity, the better they can serve the customer to
his satisfaction. Unlike earlier, it is now the buyer's market,
therefore the demands of the customers are of ultimate
importance. The attitude of the market is now not as relaxed as it
used to be, now they want to serve the customer.

2. PRODUCT - product is itself the central unit of the entire


marketing system. Without the product this whole chain of
distribution would not have been necessary. For any product to
last in the market its quality must be high and the price reasonable.
If any product does not work in the market at all one of the reason
could be that the market survey has been insufficient in which case
it does not satisfy the needs of the customers.

The other reason could be that the quality is low in order to make it
a low cost product or if the quality drops with time. In such a case,
due to its name the product will sell while but sooner or later its
sales rate will drop. The third and most dangerous for the
cessation of demand of a product is competition. If the competitive
item is superior in quality and more affordable, it can result in the
failure of a long-standing product. Therefore every manufacturer
and the marketer have to always be alert, lest another product
takes over the market. They need to always come up wit
interesting schemes that can tempt the public.

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A product is not necessarily an object; it can also be a scheme, an


exchange offer, a holiday trip or even an idea. All these things can
be referred to as products.
From the sales volume observed, the products sales go through a
typical pattern in most cases. Every product moves through a life-
cycle of 5 stages. Every stage and its duration may vary according
to products.

1. Introduction: This is the period when the product is getting


known, and introduced in the market through various methods.
This first impact that is laid on the market and public are very
important and play an essential role in the success of a product.
When the companies promote it well through a lot of advertising
and publicizing, then the product starts of well. But ultimately the
product's performance designates its real success.

2. Growth: This s the phase when the product is accepted by the


consumers and traders. If the traders and distributors feel
convinced about its success they welcome the product. In this
phase good and substantial advertising and marketing leads to
more profit.

3. Maturity: In this stage the product faces competitions. It has to


fight with big and established companies, it becomes a tough up-
hill path. Here their advertisements often depict modesty which
attempts to touch the public and don't reveal about their product
much but rather indicate about it subtly. The manufacturers have
to spend extra time, energy and money to modify their product for
improvement.

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4. Saturation: This occurs when the product is settled in the market


and is being consumed by people. There are only replacement
sales; replacement sales would mean, I would buy a soap or a
toothpaste only if I am on the verge of finishing one, it is not that I
would like to go on stocking soaps or toothpastes in my house.
Here the prices begin to fall to keep the people going and
rejuvenate their interest in their product. Now the profit margin
becomes inevitably very low.

5. Decline: Once the saturation point has reached its peak, the
product inevitably enters the decline stage. The sales drop, the
competition becomes strenuous; the value of the product slowly
drops with time in the market. The companies often cannot afford
to keep spending on advertising, thus the product declines and
gradually disappears from the market.

FIG : A

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3. VALUE, COST AND SATISFACTION-

These 3 share a rapport amongst themselves. When a customer


chooses a certain product he has to take into consideration all the
three.

Let's take an example to illustrate this stage: X works in an office


which is 5kms, from his home, he has to travel everyday from his
house to reach his office. X has several options in front of him as
choice of transport: bicycle, motorbike, car, taxi, bus. This is called
the product choice set. Now he has to judge what is of maximum
value, the transport facility which is most economical and which
will satisfy his needs. Value is a subjective thing which every
individual chooses for himself. If X wants something which is very
economical then he would choose a bicycle, which is less safe,
more effortful and as well as very slow.

If X wants speed then he would choose a car. Now X has to see


whether he can afford a car or no, because a car costs much more
than any of the options available and also maintaining it after
buying, so he has to consider the cost.
So, now we can see the concept of value, cost and satisfaction.

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4. EXCHANGE AND RELATIONSHIP-

Marketing takes place when people decide to satisfy their need


through exchange. When there are 2 parties and one has
something which is of use to the other, then there is an exchange.

In globalization most often there are tie-ups, this is a form of


exchange and also securing a safe relationship. When the Honda
Company which had become successful in Japan, it then wanted
to expand and globalize, so it ventured into countries like United
States, Singapore and also India. It tied up with the partner of then
existent company: Hero, and formed Hero Honda. Their successful
tie-up resulted in the benefit of both companies. Honda ventured
into world market while hero got a better boost with its help. At
present this company has sold over 14 million vehicles all over the
world. The same thing can be said about the Maruthi Company
which got tied up with the Suzuki Company forming Maruthi
Suzuki, in India they are the largest selling automobile company.
Thus exchange done with good partners can be of great help. If
one party is seeking exchange more than the other party, we will
call him marketer and the other party the party the prospect.

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5. MARKET-

Market is the place or lieu where exchange and business takes


place. It is the ground for the selling and buying. The study of the
market is essential for the launching and the success of any
product. In this, statistics plays a great role. For keeping track of
sales, profit during years, statistical comparisons can help the
company to make faster and logical decisions quickly.
The market is something very uncertain and inconsistent. Some
product may do well today and may be very well of the market the
very next. To be successful one has to keep track and move with
the need of the market.

6. MARKETING AND MARKETERS- The skill of making the right


things, making them rightly available to the right people. It is the
human activity taking place in relation to market, getting the
knowledge and information to people by various means. The
people who are part of decision making are the managers and the
marketers; they know how and where the product will be most
consumed. Their prime worries are: quality, pricing, packaging,
branding and publicizing. We'll go into the details a little later to
see how important these can prove.

Pricing: It is essentially the thing of interest since it generates


revenue or income, it has to be done tactfully in order to not
disappoint the crowd and yet make a profit. Economists define
price as the exchange value of a product or service through the
medium of money. Any change of price strikes the customer
immediately and makes him curious for the reasons, whether less

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or more, he gets suspicious. He dislikes the idea of paying extra,


and doubts the success of the product if the price falls.
Pricing label expresses the value of a product. An exchange of
goods can take place only if the buyer and seller agree on a price.
The price of any product is likely to vary depending on the
condition of the market and demands.

Some label their products very high to show that they are of a
higher class, and the other products of the same type are forced to
quote as high as the others so that the customers value their
products also and don't doubt their product.
At the planning and decision making level, much thought has to be
given to appropriate pricing.

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5.3 MARKETING MIX

Marketing Mix is the method used for executing the important


decisions that have been taken. Particular targets are set and the
planning to work towards them to attain the target is called the
marketing mix. This is comprised of 4 main elements: Product Mix,
Price Mix, Distribution Mix and Promotion Mix. Each of these
elements are an entire area by itself and comprise of smaller
components.

Product Mix: as we have seen earlier, the product is the central


unit of our entire marketing process. In the product mix, the main
decisions that determine the product are taken.

One of the main components is service after sale; this is an


important part of the sale of a product because it can determine
your opinion about a particular company. As long as the guarantee
period of a product lasts, it is the duty of the company to serve you
until you are satisfied. At times, irrespective of the warrantee
period, when the company gives you good service after your
purchase, your opinion and esteem for the product is automatically
raised, and you are likely to spread your good experience around
you, which serves the company as an advertisement or a
promoting system. Their good service proves that they actually
care to give you the best, and not just sell their product in nay
condition.

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The other thing that falls under the product mix is brand. This
again has something to add to the success of a product the brand
name identifies a product in the eye of the consumer. It also
simultaneously makes itself unique by its name showing that it
stands or can be recognized by a certain particular name. if the
brand name is catchy and wee chosen it can help immensely in
advertising and promoting the product. Once the brand name
clicks and catches people's attention, it becomes part of their
active vocabulary even without revealing it. The best example is:
what we call Scotch tape is not the exact word for it, it is actually
called cellophane but now the common word for it now has
become scotch tape. The other examples are the use of the words:
Band-Aid, Fiberglass, and Velcro.

There is an interesting example of how a brand name becoming a


part of the people's active vocabulary: in Indonesia the auto-
rickshaws are made by the Bajaj Company like the Indian ones. So
there instead of calling for an "auto" they call for a "bajaj", unlike in
India we call them simply "autos".
Often the brand of a certain product that breaks through the
market is remembered and referred to later on, and it is does not
have to be only a brand, it can be something which happens in day
to day life also.:

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Like for example:


Who stepped first on the moon?
Everybody would know the answer…Neil Armstrong.
But now if I were to ask you who was the second to step to step on
the moon?
Oops! Not many people would remember the answer to that!
Packaging is another part handled by the product mix; packaging
not only determines the look of the product but also protects its
quality. Good appearance given to a product attracts the public's
attention.
As far as the practical part of packaging is concerned, we would
have generally noticed that foreign or imported goods are always
better packed than Indian ones, especially in food products, at
least they seem to. This can affect the reputation of a company in
a good or a bad way.
So, these are the things handled by the product mix as under
marketing mix.

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 DISTRIBUTION MIX

Distribution mix is the delivery and distribution of a product.


Delivery must be done in the safest possible way in order to not
damage the product and also not add to the cost of the product.
The products need to be appropriately distributed in order to serve
the places where it would be most in demand. The distributors who
take charge of this activity, study and know how exactly spread the
goods in order that they sell the best. In this transportation affects
the price of a product in a big way. We would have noticed this
when the moment the price of petrol or diesel increases, the price
of certain product also increases.

The main products which are immediately are the raw material
products, especially the vegetable prices soar up immensely. On a
normal day a kilo of tomatoes would cost around 7 rupees, and
after the hike in the fuel the price goes up to as much as 20
rupees. And when the fuel prices increase too much, then there
are immediately transport strikes, a very common site in India.
Transport costs have to be always kept at the minimal. To avoid
extra expenditure, trucks transporting goods avoid the express
roads in order to avoid the toll. Efficient distribution of a product
can play a big role in its success by getting the product at the right
time to right people at the time of their need.

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 PRICE MIX
Price determines the value of a product as already seen earlier.
So, deciding and fixing any price for a product is very important in
order that the product gets the required profit as well as is
affordable.

Keeping attractive discounts often seems to help. When a stock


clearance is needed, big posters are put up to announce the
discounts. As soon as the word 'sale' strikes our eyes, we are
attracted to at least 'see' what is offered and then the tactful
salesman tries his best to make us purchase something.
Another trick applied in discounts is 'up to 70% off'. So we go to
the shop looking foe the thing which is 70% off, but we never find
anything of that sort and finally end up buying something which
has only 15% off.

These days very often we hear 'bilkul muft', but before getting into
the temptation one should wait and think that nobody is waiting to
give free products, so it means that there is much more to it than
we can actually see.

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 PROMOTION MIX

Promotion mix contains publicity, advertising, public relations and


demonstrations. Advertising and publicity is a vast topic and can
be itself treated as a subject, so I'll come to it a little later.
Public relation with the customers has gained importance unlike
earlier when the customers were hardly cared about.
Live demonstrations in public places like shopping malls and public
places tend to attract many people; in Pondicherry we see many of
them in Grinde and Nilgiris. Some are entertained by these
demonstrations and some are also convinced by them. Because
these demonstrations are more convincing to the customers
because they can virtually see what is happening instead of
reading about it or being told about it.
Here I would like to give an incident which happened to me. Once
me and my friend went to Nilgris, there outside a man had put up a
small demonstration. He was trying to sell packed sausages, which
once bought had to be just fried and then could be eaten without
any unnecessary ingredients. To convince the people he had fried
some sausages and he even let us taste them. We liked it and
bought a packet. You could say that this is a one time profit, but
we bought this product several times after that.

So, now having covered the 4 important mixes, namely Product


Mix, Distribution Mix, Price Mix and Promotion Mix, make up the
whole of Marketing Mix. This mix is expected to provide maximum
customer satisfaction if used and executed well.

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5.4 TECHINQUES OF MARKETING

This section covers advertising, media politics, public policies,


market study and research.
Advertising is the most powerful tool for promotion. It is generally
carried through media: newspapers, radio, magazines, posters and
the most television. Nowadays advertising is no more a tool but an
industry but itself.

We would have noticed that 10 years back we were surprised to


see when ads were introduced 2 serials or just before the News.
Then it gradually grew and we started having ads in the middle of
the serials. And at present, the ads take up as much time as 50%
of the serial time. In cricket, ads are shown between the overs
which are as long as the overs themselves. Earlier when ads were
shown in between serials, we could easily switch over to another
channel, but in these days they are very cleverly put in order that
we don't miss them.

Often we see ads coming up in the middle of the scenes or just


before the climax or just before a song in the movies. In cricket the
replay of a fantastic shot or a good wicket is shown only after a few
advertisements.
Nowadays in cricket and in private cable channels we would see
ads at the bottom of the screen and below that more ads scrolling
to the left, we have no other option but to look at them.

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We at times wonder whether these companies really make a profit


because the expenses of putting up these ads are very high.
When you have special shows telecasted, every second of the ad
costs a fabulous amount. During the Oscars this year, each 40
second was quoted as 1.6 million $.

A few years back in 2001 in Doordarshan every 10 second as was


quoted from 80,000 rupees to 1,40,000 rupees, depending on the
time of the ad to be telecasted. And on special days like New
Years or Christmas or a cricket match involving India, the rates
could go up to 3,20,000 rupees.

The fact that the companies are willing to spend so much implies
that it must certainly be helping them. What in fact happens is that
when the ad and its message keep on going in front of eyes, it
enters into us subconsciously. The advertisers basically rub it into
us, so that next time we go to the market we are reminded of this
ad and we feel like trying out this product.

Slogans play an important role, catchy slogans helps the public to


capture and attract them towards their product. These are mainly
targeted for the family oriented people and the teenagers. When
you hear something like 'Yeh dil maange more' or 'Desh ki
dhadkan' or 'Tomorrow is mine' or ' Believe in the best', you feel a
king of surge in you. So you think by drinking a Pepsi, or riding a
Hero Honda vehicle, or wearing a Reebok shoes or watching your
favorite serial on BPL will satisfy this surge. So you go ahead and
buy this product…these marketing techniques are subtle ways but
are directly targeted towards us to buy this products.

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In the television advertisements another attraction is to bring in film


stars and popular sports stars. Most of the public looks up to them
in awe and treat them as demi-gods, so whatever products those
stars use attracts the public's attention easily.

Most of us know that these stars have no authority on the matters


they are advertising; surely Sachin Tendulkar doesn’t know much
about the substances that go in the MRF tires or does Shah Rukh
Khan know much difference between the mileage of a Santro Xing
or his own Mercedes, but yet each one of them speaks with full
authority on these matters and we are tempted to believe them.
Each of these celebrities are paid a huge amount for these
ads…Sachin Tendulakar gets paid around 1.5 crores to 2 crores
for these. The cost spent in popular stars works magic and costs
formidable amounts.

A good example to show this magic which used these stars is the
Pepsi Company which profited by a huge amount. Coca-cola in the
late 50's outsold Pepsi by 10 to 2, which means that for every 10
bottles Coke sold Pepsi sold only 2. Coke had got into the people's
mind and had already built up a powerful position, so now what
could Pepsi do against such a strong rival?

Pepsi took a big risk, it started to target the teenagers as Coke as


targeting the adults; so Pepsi brought in stars like: Michael
Jackson, Lionel Richie (both famous singers). And in India it
brought in Sachin Tendulakar, Vinod Kambli, and Mohammad
Azzarudin. Even though Pepsi's target was the teenage market,
the market was everybody's. A 50 year old guy who wanted to

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think that he was all young and a chill out guy like the people he
sees on the screen would think that by drinking a Pepsi he would
convince himself as well as the others that he is very young. After
all everyone likes to be young and be a 'mast' guy!!

Within one generation, Pepsi covered this gap by a huge margin.


Now Pepsi is just behind Coke, every 10 bottles Coke sells now
Pepsi sells 9 bottles. And in supermarkets and eateries Pepsi
easily outsells Coke by a sufficiently big margin.

These days some of the ads give just the minimal information, they
just show one striking sentence or a small part of the ad, this
makes the public wonder what it is about or wait for the rest of the
advertisement. This technique is used in publicity of films, actors
and songs are shown but no the name of the films, this keeps the
public's interest constant.

Some of the companies do crazy things just to make money and


promote their gods. In the cricket World Cup held this year in
South Africa, Castrol a non-Indian oil company started selling
music albums in the praise of our Indian cricketers as well as our
own Motherland, the result…this scheme obviously didn't work out.
Hutch a mobile company started showing cricket matches on the
mobile's screen and 5 star hotels named their menus and recipes
after some the Indian cricketers.

Statistic report says that the advertisements expenditures had


gone up by 250% compared to last World Cup held in 2000 in
England, it is amounted to something like 800 crores.

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We can quite clearly how some of the companies spend so much


money on advertising, but does anyone stop to think and ask who
is paying for all this expenditure and yet helping them to make a
profit? The answer is plain and simple: it is us, the customers, and
the public. It is we who are paying for this lavish campaign. A
product costs up to 30% more to cover up this expenditure. It
would be better from the customer's point of view if the ads
provided only information and avoid the extra glamour. But then, it
wouldn't attract our attention, therefore this whole drama is
necessary so that we see these ads. This industry proves to be
succeeding in its endeavors and throbbing with possibilities and
innovation.

There can be quite a bit of dirty corruption involved in media


advertising like some companies and industries buy up a
newspaper company for example. If a company buys an entire
paper, that paper continuously prints positive comments and
opinions on the company. This of course affects common man's
understanding and he is really pulled towards that product.
Around 4,050 crores are spent every year in print media, which
includes newspapers, all magazines, posters, and any other kind
of advertisements on printed paper. And these 4,050 crores are in
India alone.

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A marketer as I have already said earlier needs to study the


market and how to make the product. For this research and
speculation he needs market information. Only with the information
can he know the market conditions, requirements and his
competitors. So, information technology plays a decisive role in
market study. Various reporting systems and data processing units
are used for this purpose. Mass communication has become very
useful with the help of information by which problems are
recognized, defined, and solved. These days through the help of
computers it is easier to get a broad view of the market and one's
own state of sales. They run different types of simulations to see
how the market may vary.

When Coke around 10 to 1 years back wanted to bring out another


soft drink called New Coke - it did a research over 2 years and did
over 200 000 taste tests and totally spent over 4 million dollars.
This surely is no joke, so we can see how much some companies
are willing to spend in their researches.

These days marketers are expected to anticipate the changes in


the market, to understand their risks, opportunities and what
strategies to use. They forecast what can happen in the market
accordingly alter and modify their product. Separate organizations
and departments are set up to collect and analyze and evaluate
relevant information.

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5.5 WHAT CAN AFFECT THE MARKET

As of now, we have seen how marketers work, what strategies


they apply, what tricks they use. Outside of their field of action,
there are several issues that can affect the market itself. When
certain thins affect the market suddenly, no amount of research
can help. Let us see broadly what can gradually or suddenly affect
the market.

 POPULATION:

The study of population structure and process is called


demography, is an important factor, there are 4 main variables. In
the study, namely size, age, sex, distribution need to be studied. A
sudden growth in the population can shake the market foundation
with overflowing demands. This does not happen all of a sudden,
but if the physical distribution of population changed, it would
certainly affect the market. The food and cloth industry rely heavily
on this demography study.

To take India's example, with a population of over a billion we are


potentially the largest market. Increasing population would in itself
mean a growth in the market.

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Another are that is covered in the population study is also the


status. Since 40% of the Indians are below poverty line, the market
has to move in such a way as to protect the interest of all the
people.

Large families usually spend on necessities whereas small ones


can afford to spend on comforts and luxuries. So, demography
study helps direct the market, and sudden changes can affect a lot
in the market.

 WARS:

Wars naturally can affect the market. There's no active promotion


done and luxuries never sell. Not only is it a time of emotional
trauma but also the loss of many lives and money. A sudden
declaration of war brings all the speculation to a naught. The
country is forced to spend on its defense and cannot afford
imports. The cessation of imports and exports affects any market
in a big way and the market research proves no good. So, this
brings an upturn in the market and all industries are affected.

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 NATRUAL CALAMITIES:

These are not predictable and can up turn the market totally.
Obviously in a flood stricken area no one's going to buy Coke or
Pepsi. It's very unfortunate and these can do irreparable damage
to human lives as well as the market.
These are some of the main things that affect the market, and then
obviously there can be political misbalance, corruption, revolutions
that can have an important hand.

 CONCLUSION

I would like to conclude by saying that now it's the buyer's market
unlike earlier, the attitude of manufacturers and marketers have
changed immensely. Marketing for a product has become
essential due to competition. in this fast moving world of exchange,
where business has become the method of working, it's still up to
each individual whether or not to get carried away into this rat
race. But at this moment, whether we like it or not marketing is a
part of our lives from which we have no practical escape.

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5.6 CONCEPT OF STRATEGY

INTRODUCTION

The top management of an organization is concerned with


selection of a course of action from among different alternatives to
meet the organizational objectives. The process by which
objectives are formulated and achieved is known as strategic
management and strategy act as the means to achieve the
objective. Strategy is the grand design or an overall ‘plan’ which an
organization chooses in order to move or react towards the set
objectives by using its resources. Strategies most often devote a
general programme of action and an implied deployment of
emphasis and resources to attain comprehensive objectives. An
organization is considered efficient and operationally effective if it
is characterized by coordination between objectives and
strategies. There has to be integration of the parts into a whole.
Strategy helps the organization to meet its uncertain situations with
due diligence. Without a strategy, the organization is like a ship
without a rudder. It is like a tramp, which has no particular
destination to go to. Without an appropriate strategy effectively
implemented, the future is always dark and hence, more are the
chances of business failure.

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 MEANING OF STRATEGY

The word ‘strategy’ has entered in the field of management from


military where it refers to apply the forces against an enemy to win
a war. Originally, the word strategy has been derived from Greek
‘strategos’ which means generalship. The word was used first time
around 400 BC. The word strategy means the art of the general to
fight in war.

The dictionary meaning of strategy is, “the art of so moving or


disposing the instrument of warfare as to impose upon enemy, the
place time and conditions for fighting by one self.”
In management, the concept of strategy is taken in more broader
terms. According Glueck, “Strategy is the unified, comprehensive
and integrated plan that relates the strategic advantage of the firm
to the challenges of the environment and is designed to ensure
that basic objectives of the enterprise are achieved through proper
implementation process.”
It lays stress on the following:
a. Unified comprehensive and integrated plan.
b. Strategic advantage is related to challenges of environment.
c. Proper implementation ensures achievement of basic
objectives.

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 NATURE OF STRATEGY

Based on the above definitions, we can understand the nature of


strategy. A few aspects regarding nature of strategy is a follows:
• Strategy is a major course of action through which an
organization relates itself to its environment particularly the
external factors to facilitate all actions involved in meeting the
objective of the organization.
• Strategy is the blend of internal and external factors. To meet
the opportunities and threats provided by the external factors,
internal factors are matched with them.
• Strategy is the combination of actions aimed to meet a
particular condition, to solve certain problems or to achieve a
desirable end. The actions are different for different situations.
• Due to its dependence on environmental variables, strategy
may involve a contradictory action. An organization may take
contradictory actions either simultaneously or with a gap of time.
For example, a firm is engaged in closing down of some of its
business and at the same time expanding some.
• Strategy is future oriented. Strategy actions are required for
new situations which have not arisen before in the past.
• Strategy requires some systems and norms for its efficient
adoption in any organization.
• Strategy provides overall framework for guiding enterprise
thinking and action.

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 STRATEGY V/S POLICIES AND TACTICS

In this subsection, the concept of strategy is compared with


concept of policies and tactics.

STRATEGY V/S POLICIES

Strategy has often been used as a synonym of policy. However,


both are different and should not be used interchangeably.
Policy is the guideline for decisions and actions on the part of
subordinates. It is a general statement of understanding made for
achievement of objectives. Policies are statements or a commonly
accepted understandings of decision making. They are thought
oriented. Power is delegated to the subordinates for
implementation of policies. In general terms, policy is concerned
with course of action chosen for the fulfillment of the set objectives.
It is an overall guide that governs and controls managerial actions.
Policies may be general or specific, organizational or functional,
written or implied. They should be clear and consistent. Policies
have to be integrated so that strategy is implemented successfully
and effectively. For example, when the performance of two
employees is similar, the promotion policy may require the
promotion of the senior employee and hence he would be eligible
for promotion.

Strategies on the other hand are concerned with the direction in


which human and physical resources are deployed and applied in
order to maximize the chances of achieving organizational
objectives in the face of environmental variable. Strategies are

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specific actions suggested to achieve the objectives. Strategies


are action oriented and everyone in the organization are
empowered to implement them. Strategy cannot be delegated
downward because it may require last minute decisions.
Strategies and polices both are the means towards the end. In
other words, both are directed towards meeting organizational
objectives. Strategy is a rule for making decision while policy is
contingent decision.

STRATEGY V/S TACTICS

Strategies are on one end of the organizational decisions spectrum


while tactics lie on the other end.
A few points of distinction between the two are as follows:
(i) Strategy determines the major plans to be undertaken while
tactics is the means by which previously determined plans are
executed.
(ii) The basic goal of strategy according to military science is to
break the will of the army, deprive the enemy of the means to fight,
occupy his territory, destroy or obtain control of his resources or
make him surrender. The goal of tactics is to achieve success in a
given action and this forms one part of a group of related military
action.
(iii) Tactics decisions can be delegated to all the levels of an
organization while strategic decisions can not be delegated too low
in the organization. The authority is not delegated below the levels
than those which possess the perspective required for taking
decisions effectively.

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(iv) Strategy is formulated in both a continuous as well as irregular


manner. The decisions are taken on the basis of opportunities,
new ideas etc. Tactics is determined on a periodic basis by various
organizations. A fixed time table may be made for following tactics.
(v) Strategy has a long term perspective and occasionally it may
have a short term duration. Thus, the time horizon in terms of
strategy is flexible but in case of tactics, it is short run and definite.
(vi) The decisions taken as part of strategy formulation and
implementation have a high element of uncertainty and are taken
under the conditions of partial ignorance. In contrast tactical
decisions are more certain as they work upon the framework set
by the strategy. So the evaluation of strategy is difficult than the
evaluation of tactics.
(vii) The formulation of strategy is affected considerably by the
personal values of the person involved in the process but the same
is not the case in tactics implementation.
(viii) Strategies are the most important factor of organization
because they decide the future course of action for organization as
a whole. On the other hand tactics are of less importance because
they are concerned with specific part of the organization.

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 IMPORTANCE OF STRATEGY

With the increase in the pressure of external threats, companies


have to make clearer strategies and implement them effectively so
as to survive. There have been companies like Martin Burn,
Jessops etc. that have completely become extinct and some
companies which were not existing before they have become the
market leaders like Reliance, Infosys, Technologies etc. The basic
factor responsible for differentiation has not been governmental
policies, infrastructure or labour relations but the type of strategic
thinking that different companies have shown in conducting the
business.
Strategy provides various benefits to its users:
• Strategy helps an organization to take decisions on long
range forecasts.
• It allows the firm to deal with a new trend and meet
competition in a effective manner.
• With the help of strategy, the management becomes flexible
to meet unanticipated future changes.
• Efficient strategy formation and implementation result into
financial benefits to the organization in the form of increased
profits.
• Strategy provides focus in terms of organizational objectives
and thus provides clarity of direction for achieving the objectives.
• Organizational effectiveness is ensured with effective
implementation of the strategy.
• Strategy contributes towards organizational effectiveness by
providing satisfaction to the personnel.

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• It gets managers into the habit of thinking and thus makes


them, proactive and more conscious of their environments.
• It provides motivation to employees as it pave the way for
them to shape their work in the context of shared corporate goals
and ultimately they work for the achievement of these goals.
• Strategy formulation & implementation gives an opportunity
to the management to involve different levels of management in
the process.
• It improves corporate communication, coordination and
allocation of resources.

With all the benefits listed above, it is quite clear that strategy
forms an integral part of an organization and is the means to
achieve the end in an efficient and effective manner

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5.7 PRICING-INTRODUCTION

Setting the right price is an important part of effective marketing. It


is the only part of the marketing mix that generates revenue
(product, promotion and place are all about marketing costs).
Price is also the marketing variable that can be changed most
quickly, perhaps in response to a competitor price change.
Put simply, price is the amount of money or goods for which a
thing is bought or sold.
The price of a product may be seen as a financial expression of
the value of that product.
For a consumer, price is the monetary expression of the value to
be enjoyed/benefits of purchasing a product, as compared with
other available items.
A customer’s motivation to purchase a product comes firstly from a
need and a want: e.g.
• Need: "I need to eat
• Want: I would like to go out for a meal tonight")
The second motivation comes from a perception of the value of a
product in satisfying that need/want (e.g. "I really fancy a
McDonalds").
The perception of the value of a product varies from customer to
customer, because perceptions of benefits and costs vary.
Perceived benefits are often largely dependent on personal taste
(e.g. spicy versus sweet, or green versus blue).

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 IMPORTANCE OF PRICING

When marketers talk about what they do as part of their


responsibilities for marketing products, the tasks associated with
setting price are often not at the top of the list. Marketers are
much more likely to discuss their activities related to promotion,
product development, market research and other tasks that are
viewed as the more interesting and exciting parts of the job.
Yet pricing decisions can have important consequences for the
marketing organization and the attention given by the marketer to
pricing is just as important as the attention given to more
recognizable marketing activities. Some reasons pricing is
important include:
• Most Flexible Marketing Mix Variable – For marketers
price is the most adjustable of all marketing decisions. Unlike
product and distribution decisions, which can take months or years
to change, or some forms of promotion which can be time
consuming to alter (e.g., television advertisement), price can be
changed very rapidly. The flexibility of pricing decisions is
particularly important in times when the marketer seeks to quickly
stimulate demand or respond to competitor price actions.
• Setting the Right Price – Pricing decisions made hastily
without sufficient research, analysis, and strategic evaluation can
lead to the marketing organization losing revenue. Prices set too
low may mean the company is missing out on additional profits
that could be earned if the target market is willing to spend more to
acquire the product. Additionally, attempts to raise an initially low
priced product to a higher price may be met by customer
resistance as they may feel the marketer is attempting to take

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advantage of their customers. Prices set too high can also impact
revenue as it prevents interested customers from purchasing the
product. Setting the right price level often takes considerable
market knowledge and, especially with new products, testing of
different pricing options.
• Trigger of First Impressions - Often times customers’
perception of a product is formed as soon as they learn the price,
such as when a product is first seen when walking down the aisle
of a store. While the final decision to make a purchase may be
based on the value offered by the entire marketing offering (i.e.,
entire product), it is possible the customer will not evaluate a
marketer’s product at all based on price alone. It is important for
marketers to know if customers are more likely to dismiss a
product when all they know is its price. If so, pricing may become
the most important of all marketing decisions if it can be shown
that customers are avoiding learning more about the product
because of the price.
• Important Part of Sales Promotion – Many times price
adjustments is part of sales promotions that lower price for a short
term to stimulate interest in the product. However, as we noted in
our discussion of promotional pricing in Part: 15: Sales Promotion
tutorial, marketers must guard against the temptation to adjust
prices too frequently since continually increasing and decreasing
price can lead customers to be conditioned to anticipate price
reductions and, consequently, withhold purchase until the price
reduction occurs again.

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 PRICING-INFLUENCES ON PRICING POLICY

The factors that businesses must consider in determining pricing


policy can be summarized in four categories:
(1) Costs
In order to make a profit, a business should ensure that its
products are priced above their total average cost. In the short-
term, it may be acceptable to price below total cost if this price
exceeds the marginal cost of production – so that the sale still
produces a positive contribution to fixed costs.

(2) Competitors
If the business is a monopolist, then it can set any price. At the
other extreme, if a firm operates under conditions of perfect
competition, it has no choice and must accept the market price.
The reality is usually somewhere in between. In such cases the
chosen price needs to be very carefully considered relative to
those of close competitors.

(3) Customers
Consideration of customer expectations about price must be
addressed. Ideally, a business should attempt to quantify its
demand curve to estimate what volume of sales will be achieved at
given prices

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(4) Business Objectives


Possible pricing objectives include:
• To maximize profits
• To achieve a target return on investment
• To achieve a target sales figure
• To achieve a target market share
• To match the competition, rather than lead the market

 PRICE ADJUSTMENT STRATEGIES

A company usually adjusts their basic prices to account for various


customers’ differences and changing situations. Here we examine
the six price adjustment strategies.
1) Discount & Allowance: reduced prices to reward customer
responses such as paying early or promoting the product. (For
example. Different seasonal or occasional offers of Nike or Chen
one offering certain discount on different range of shopping)
2) Discriminatory: adjusting prices to allow for differences in
customers, products, and locations (for example. Price of Pepsi in
Pearl Continental Hotel as it is much higher than its actual value in
the hotel just because of the segment and environmental change
in this case the cost is the same but according to the segment
pricing is different)

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3) Psychological: adjusting prices for psychological effects. Ex:


$299 vs. $300 (for example. English toothpaste reduced its prices
from 12 to 10 just to attract their customers and increase their
sales in this way they implemented physiological pricing strategy
besides that different offers in the market pricing like just 99
rupees or 999 rupees in various stores is also physiological pricing
strategy.)

4) Value: adjusting prices to offer the right combination of quality


and service at a fair price. (For example a person shopping in
Zainab market might seek value and quality at fair price. This
process helps to deliver value and satisfaction to customers.)

5) Promotional: temporarily reducing prices to increase short-run


sales. (For example. Pepsi reduces its prices during the month of
Ramadan and also offers different schemes and similarly Warid
Zem offers nights free offers to their customers)

6) Geographical: adjusting prices to account for geographic


location of customer. (For example. DHL charges different rates
according to the destination)

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CHAPTER 6
INTRODUCTION OF COCA COLA
COMPANY

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TYPE : PUBLIC (NYSE:CCE)

FOUNDED : 1926

HEAD QUARTERS : ATLANTA, GEORGIA,


U.S.A.

CHIEF EXECUTIVE OFFICER : JOHN BROCK

CHIEF FINANCIAL OFFICER : WILLIAM W.DOUGLAS

INDUSTRY : BEVERAGES

REVENUE : $19.800 BILLION USD

OPERATING INCOME : $1.495 BILLION USD

NET INCOME : $1.143 BILLION USD

EMPLOYEES : 73,000 (APPROX)

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6.1 HISTORY OF COCA-COLA

This story begins in Atlanta, Georgia on May 8, 1886,


when a pharmacist called Dr. John Smith Pemberton first
mixed Coca-Cola in his back yard. This formula, which was
made from carbonated water, cane sugar syrup, caffeine,
extracts of kola nuts and cola leaves, was brought to the
nearby Jacobs’ Pharmacy where it made its Debut as a soft
drink the same day, selling for only 5 cent. His bookkeeper
named this drink “Coca-Cola” after the first two ingredients
and the same distinctive script he wrote it in is the same logo
they use
To this day.
In January 1893 Coca-Cola was registered with the U.S.
patent office. Later on in 1915 the Root glass company
created the famous contour glass bottle for Coca-Cola in
1915.In 1917 Coca-Cola was found to be the world’s most
recognized trademark with a record of 3 million Coke’s sold
per day. Unfortunately, John Pemberton fell ill, and did not
live to see his product’s success.

Sadly, in the first year of Coke’s existence, Pemberton and


his partner only made $50. Pemberton sold two third of his
business in 1888 to cover his losses and keep the business
afloat.

He died later that year, and Mr. Candler, an Atlanta druggist,


purchased total interest in Coca-Cola for an unbelievable
$2,300 in 1891. In 1891,Candler and his brother formed the
Coca-Cola Company.

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6.2 EARLY GROWTH

In 1893 Candler registered Coca-Cola as a patented


trademark. He also responded to growing concern over
the dangers of cocaine by reducing the amount of coca in
the drink to a trace. However, he kept some coca extract
in Coca-Cola so the name would accurately describe the
drink. Candler only had a patent on the name, and not the
drink syrup that is, the drink’s base, containing all the
ingredients minus carbonated water. He figured that
keeping the Coca in his formula would legally allow the
company to distinguish its drink from imitations. Other
companies also produced soda drink made with cola nut
extract. In particular, the Pepsi-Cola Company would
become Coca-Cola Company’s major competitor over the
next few decades.

Candler also spent more than $11,000 on his first massive


advertising campaign in 1892. The Coca-Cola logo
appeared across the country painted as a mural on walls;
displayed on posters and soda such as calendars and
drinking glasses. In addition, Candler was the first person
ever to use coupons to gain customers for a product. He
distributed flyers offering free soda fountain glasses of
Coca-Cola to people visiting his drugstore.

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In 1894 the Coca-Cola Company opened its first Coke


syrup production plant outside of Atlanta, in Dallas, Texas.
That same year a candy storeowner in Vicksburg,
Mississippi, installed bottling machines and produced the
first bottled Coke. It had previously been sold only at soda
fountains. By 1895 the drink was sold in all U.S. states
and territories.

In 1899 lawyers Benjamin Thomas and Joseph


Whitehead of Chattanooga, Tennessee, bought the
exclusive right to distribute Coke syrup to bottles
throughout most of the country for only on dollars, at the
time, Candler saw little profit in bottling and was more
than willing to give up that part of the business.

In 1915 the Root Glass Company created a couture glass


bottle for Coke, its design based on the curvature of a
coca bean. This bottle design became a Coke trademark
worldwide. The same year, Candler retired from the
company, passing it on to his children and moving into
polities. He was elected mayor of Atlanta in 1916.

In 1919 the Candler family sold Coca-Cola to


businessman Ernest Woodruff of Columbus, Georgia, for
$25 million. Woodruff son, Robert, was elected company
president in 1923. Robert Woodruff was a skilled
marketer, and he put more of the company’s resources
into market research than manufacturing Coke.

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6.3 WARTIME DEVELOPMENT

During World War II (1939-1945), Woodruff also boosted


Coke’spopuler image in the United States by pledging that
his company would provide Coke to every U.S. soldier.
The company did not limit itself, however, to only doing
business that would increase its success in America. In
the period leading up to the war, between 1930 and 1936,
it had set up a division of the company in Germany, and it
continued that venture during the war. It recreated its
image as a German company and allowed the Germans
to produce all but two, secret, Coca-Cola ingredients in
their own factories.

In 1941 the German company’s president, Max Keith,


developed Fanta orange soda using orange flavoring and
all the German-made Coke ingredients. The Coca-Cola
Company’s wartime efforts helped it expend its global
market, often with the economic support of the U.S.
government.

By the end of the war in 1945, it had established 64


overseas bottling plants. The same year the company
registered a patent on Coca-Cola’s popular nickname,
COKE.

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6.4 POSTWAR GROWTH

In 1955 Robert Woodruff retired as the Coca-Cola


Company’s president. Candler and Woodruff are
remembered as the two most important figures in the
company’s early growth, both for their contributions to the
company and their considerable fortunes donated to the
city of Atlanta. After Woodruff departure, the company
began to diversify by producing new products, acquiring
new business, and entering new international markets.

In 1960 the Coca-Cola Company purchased the Minute


Maid Corp. producer of fruit juices and began offering
Coke in cans. Between 1960 and 1963 it also launched
four new soft drink in the United States: Fanta, an orange
soda; Sprite, a lemon-lime soda; Diet Cola; Diet
grapefruit-flavored soda. In 1964 the company acquired
the Duncan foods crop. In 1967, it created the Coca-Cola
foods division by merging its Duncan and Minute Maid
operations.

In the late 1960s, Coca-Cola faced difficulties in some of


its foreign markets. When the company built a bottling
plant in Israel at the outset of the Arab-Israel War, the
governments of all Arab League nations banned the
production and sale of Coke. A year later the company
withdrew from its markets in India when that country’s

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government requested that Coca-Cola reduces its equity


in joint ventures to 40 percent. The company refused to
relinquish so much control over those operations.

In 1977 Coca-Cola began packaging Coke and other


drinks in two-liter plastic bottles. The popularity of these
large bottles grew over time, and their sales earned the
company new project, primarily in small specialty and
convenience stores.

In 1982 the company introduced Diet Coke, which soon


becomes the best-selling diet soft drink in the world.

Also in 1982, Coca-Cola purchased the motion-picture


company, Columbia Picture Industries, also know as Tri-
star Pictures, for almost $700 million. Two year later, the
company sold off its Columbia holdings and other media
acquisitions to Sony Corporation for over $1.5 billion.

By 1984 Pepsi-Cola had gained on Coke’s previous


domination of the U.S. market to the point that the two
had almost equal sales. In an attempt to return market
dominance, the company attempted the first-ever reason
of the original Coke recipe.

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6.5 RECENT DEVELOPMENTS

In 1986 The COCA-Cola Company consolidated all of its


no franchised U.S. bottling operating as Coca-Cola
Enterprise, Inc. The new company began acquiring
independent bottling companies, a venture that grew into
the world’s largest bottle of soft drinks by 1988, while
Coca-Cola Enterprise distributes over half of all Coca-
Cola products in the United States, small franchises
businesses continue to bottle can and distribute the
company’s drink worldwide.

In 1987 The Coca-Cola Company was fisted in the


prestigious Dow Jones Industrial Averages index of stock
market performance. Its stock is traded on the New York
Stock Exchange. Coca –Cola and Pepsi Company
products occupied nine of the top ten spots in the U.S.
soft drink market in themed-1990s.

Worldwide, Coca-Cola ranked first in soft drink sales, and


the company earned almost 80 percent of its profits from
international sales

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CHAPTER -7

INDUSTRIAL PROFILE

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7.1 BEVERAGE INDUSTRY IN INDIA: A


BRIEF INSIGHT

In India, beverages form an important part of the lives of


people. It is an industry, in which the players constantly
innovate, in order to come up with better products to gain
more consumers and satisfy the existing consumers.

The beverage industry is vast and there various ways of


segmenting it, so as to cater the right product to the right
person. The different ways of segmenting it are as follows:
• Alcoholic, non-alcoholic and sports beverages
• Natural and Synthetic beverages
• In-home consumption and out of home on premises
consumption.
• Age wise segmentation i.e. beverages for kids, for adults
and for senior citizens
• Segmentation based on the amount of consumption i.e.
high levels of consumption and low levels of consumption.

If the behavioral patterns of consumers in India are closely


noticed, it could be observed that consumers perceive
beverages in two different ways i.e. beverages are a luxury
and that beverages have to be consumed occasionally.
These two perceptions are the biggest challenges faced by
the beverage industry. In order to leverage the beverage
industry, it is important to address this issue so as to

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encourage regular consumption as well as and to make the


industry more affordable.
Four strong strategic elements to increase consumption of
the products of the beverage industry in India are:
• The quality and the consistency of beverages needs to be
enhanced so that consumers are satisfied and they enjoy
consuming beverages.
• The credibility and trust needs to be built so that there is a
very strong and safe feeling that the consumers have while
consuming the beverages.
• Consumer education is a must to bring out benefits of
beverage consumption whether in terms of health, taste,
relaxation, stimulation, refreshment, well-being or prestige
relevant to the category.
• Communication should be relevant and trendy so that
consumers are able to find an appeal to go out, purchase
and consume.
The beverage market has still to achieve greater penetration
and also a wider spread of distribution. It is important to look
at the entire beverage market, as a big opportunity, for brand
and sales growth in turn to add up to the overall growth of
the food and beverage industry in the economy.

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7.2 SOFT DRINK INDUSTRY IN INDIA

INTRODUCTION

The Indian Soft-Drink Industry is a 3500 crore rupee Industry


comprised of consumer’s throughout the country, and of all
ages. The industry has been comprised of all Indian Soft-
Drinks manufactures and the multinational Coca-Cola up to
1976.

From 1976 to 1989, the industry only comprised of Indian


manufacturers namely, Parle, Campa-Cola and Dukes.
Decades of 90’s have brought changes in Government
Policies of liberalization, which has helped user in two huge
American Multinational Pepsi-Cola international and Coca-
Cola.

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 THE CHRONOLOGY OF SOFT-DRINK


SCENARIO IN INDIA
1977
 Refusing to dilute its equity stake, Coca-
Cola winds up it operations in the
country.

 Thums-Up from Parle and Campa-Cola


from Pure Drinks launched.
1986
 An application for a soft drink cum snack
food joint venture by Pepsi. Voltas and
Punjab agro is submitted to the Indian
Government.

1988
 Final approval for the Pepsi food limited
project granted by the Cabinet
committee on economic affairs of the
Rajeev Gandhi Government.

 Coca-Cola South Asia Holding


Incorporation of the U.S. files an
application to manufacture soft drinks

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concentrate in Noida (Delhi) free trade


zone.
1990
 Pepsi Cola and 7 Up launched in limited
market in North Indian.

 The Government clears the Pepsi


Project again but with the brand name
changed to Lehar Pepsi.
Simultaneously, it also rejects the
application of Coke. Citra hits the market
from the Parle Stable.
1991
 Britco food files an application before
FIPB to set up a new 50 crore facility in
Maharashtra.

 Pepsi extends its soft drink reach on


national scale. Products launched in
Delhi and Bombay.

 Britco foods application cleared by the


FIPB, Pepsi and start initial negotiations
for a strategic alliance but talks break of
after a while.

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1993
 Pepsi launches Teem and Slice to
counter Limca and Maaza respectively
from Parle. Pepsi captures about 30%
market share in about two years.

 Coke files an application for a 100%


owned soft drinks company with FIPB,
Decides to part ways with Rajan Pillai.
The Government clears the Coke
application in record time.

 Voltas pulls out of the Pepsi Food


Limited joint venture. Pepsi decides to
buyout the Voltas share and raises its
equity to 92% Report of Coke Parle joint
gain strength.

 Pepsi launched 1 liter bottles in Pepsi-


Cola, Mirinda and Teem flavors. Sweeps
off the 100ml segment over Pure Drinks.

 Coca-Cola buys out Parle and major


leaders of the market, Ramesh
Chauhan, becomes a part of the Coke
game plan.

 Fountain Pepsi launched in the Northern


part of India.

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 Coca-Cola hits the Indian in 300 ml at


the price of 250 ml. Equity 100% for
Coca-Cola.

 Pepsi jump up in to Mineral Water

 name Aquafina.

2000
 Coca-Cola Indian has registered a
growth of 18th percent in its net sale
during the first quarter of the current
fiscal year.

 Hrithik the burning sensation of


Bollywood is hired to advertise Coke

 is very effective.

2001
 Coca-Cola upgraded from 1.5 ltr. To 2
ltr.

 Coke hired Ashwaria, Amir Khan and


Hrithik for effective advertising.

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7.3 COCA-COLA IN INDIA

The Coca-Cola Company entered India in the early


1950s. It set up four bottling plants at Bombay, Calcutta,
Kanpur and Delhi.

In 1950 as there were negligible companies in Indian


market therefore Coca-Cola did not face much competition
and they were accepted in Indian market more easily. By the
end of 1977 Coca-Cola had captured more than 45% of
market share in India. Then Coca-Cola left India following
public disputes over share holding structure and import
permit.

As per FERA REGULATION the company was


required to India close operation by May 5, 1978 yet strongly
enough the company’s operation come to end in July 1977.

In October 1993, Coca-Cola returned to India after 16


years of absence with the slogan “Old waves have come to
India again” first launched in HATHRAS near AGRA HOME
of the famous TAJ MAHAL.

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At this time Parle was the leader in soft drink market


and had more than 60% of the total market share in soft
drink Coca-Cola joined hand with Parle and strategic alliance
with Parle export give the company instant ownership of the
nation top soft drinks brands Thums-Up, Limca, Citra, Gold
Spot and Maaza access to Parle’s extensive 62 plant bottling
network and a base for the rapid introduction of the
company’s international brand by striking a $40 million deal
with Parle Coke almost a clear sweep and made it goal as
“To become an all occasion drink not a special treat
beverage”.

 Coca-Cola India President Profile

Atul Singh took over as the President & CEO, Coca-Cola


India from 1st September 2005.

Atul, holds a MBA degree from Texas Christian University.

• Prior to this assignment, Atul Singh was the President of


East,Central & South (ECS) China Division in January 2005.

• Prior to joining Coca-Cola, Atul worked for the Colgate


Palmolive Company for 10 years and held several roles
including Country General Manager, Nigeria (1995-1998),
CFO then General Manager, Romania (1992-1995) and
Finance Manager, USA Body Care (1990-1992), Prior to
Colgate, Atul worked as an Auditor with price Waterhouse in
New York.

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 Coca-Cola Product Manufacturing Plant


Layout

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 Manufacturing Plant Product Process

Manufacturing Process of coca-cola products have different

steps, which are cited below-

• Ingredient Delivery

• Washing and Rinsing

• Mixing and Blending

• Filling

• Capping

• Labeling

• Coding

• Inspection

• Packaging

• Warehousing and delivery

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7.4 VISION OF COCA-COLA IN INDIA

Provide exceptional strategic leadership in the Coca-Cola


India System resulting in consumer and customer preference
and loyalty through Coca-Cola’s commitment to them, and in
a highly profitable Coca-Cola corporate branded beverage
system.

VISION FOR SUSTAINABLE GROWTH

• PROFIT: Maximizing return to shareowners while being


mindful of our overall responsibilities.

• PEOPLE: Being a great place to work where people are


inspired to be the best they can be.

• PORTFOLIO: Bringing to the world a portfolio of beverage


brands that anticipate and satisfy peoples’ Desires and
needs.

• PARTNERS: Nurturing a winning network of partners and


building mutual loyalty.

• PLANET: Being a responsible global citizen that makes a


difference.

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7.5 MISSION OF THE COCA-COLA IN INDIA

Create consumer products, services and


communications customer’s service and bottling system
strategy processes and tools in order to create competitive
advantage and deliver superior value to:

 Consumers as a superior beverage experience.


 Consumers as an opportunity to grow profits
through the use of finished drinks.
 Bottlers as an opportunity to make reasonable to
grow profits and volume.
 TCCC as trademark enhancement and positive
economic value added.
 Suppliers as an opportunity to make reasonable
profits when creating real value added in an
environment of system wide teamwork, flexible
business system and continuous improvement.
 CCI associates as superior career opportunity.
 Indian society in the form of a contribution to
economic and social development.

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CHAPTER – 8

PRODUCTS OF COCA COLA

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8.1 PRODUCT PROFILE OF COCA-COLA

There are nine brands of coca-cola in India and they are


differ in taste, flavor and also in their colors.

1.COKE

Coke is considered to be a cola drink. It is generally


preferred by all sections of consumer. This is a case cow
brand for the company in terms of sales revenue.

2.THUMPS-UP

Thumps-up is also considered to be a cola drink. It is hard in


comparison to coke. It is preferred by all section of
consumers but especially to teen-agers. It is a big source of
company to cash its publicity.

3.LIMCA

Limca is considered to be lemony in taste, and comes under


the category of cloudy lemon because of its colour, which is
similar to that of clouds. It has to yield good sales revenue. It
is generally preferred by Children & Women.

4.FANTA

FANTA ORNAGE, It is orange flavor & preferred by Children


,girls and Women.

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5.MAAZA

MAAZA MANGO, in maaza cold drink no gas only based on


juice. It is a non-aerated soft drink. It is preferred mostly
Children & Women.

6.KINLEY SODA

This is a soda drink. It has no colour and no flavor. It is


generally used with alcohol and used by adults.

7.SPRITE

Sprite is a good product at cola and contains at lemon flavor.

8.KINLEY WATER

Kinley water is a fresh and mineral water and market


competitor of Bisleri and Aquafina.

9.MINUTE MAID

In Minute maid pupply orange cold drink no gas only based


on orange juice. It is a non-aerated soft drink and market
competitor of Tropicana Twister.

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8.2 PRODUCT RANGE OF COCA COLA


INDIAN PRODUCT RANGE

Flavour Ingredients Pack Product Company

Cola Cola Flavour 200Ml. Coke, Coca-Cola


carbonated water 300Ml. Thumsup
sugar 500Ml.
1 Litre
1.5 Litre Pepsi Pepsi
2 Litre

Orange Orange Flavour + 200Ml. Fanta Coca-Cola


Carbonated 300Ml.
Water+ Sugar 500Ml.
1 Litre
1.5 Litre Mirinda Pepsi
2 Litre

Fruit Juice Mango Pulp+ 250 ML Maaza Coca-Cola


Treated water+
sugar Slice Pepsi

Cloudy Lemon Flavour + 200Ml. Limca Coca-Cola


Lemon Carbonated 300Ml.
Water+ Sugar 500Ml.
1 Litre
1.5 Litre Mirinda Lemon Pepsi
2 Litre

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Clear Lemon Flavour+ 200Ml. Sprite Coca-Cola


Lemon Carbonated Water 300Ml.
+ Sugar 500Ml.
1 Litre 7’Up
1.5 Litre Dew Pepsi
2 Litre

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8.3 DIFFERENT PLAYERS IN THE SOFT


DRINKS MARKET

 PEPSI

Caleb Brandhum, a North Caroline Pharmacist,


structure Pepsi Cola in the 1890’s as cure of dyspepsia
(indigestion). In 1902, Bradhum applied for a trade mark,
issued ninety seven share of stock and began selling Pepsi
syrup in earnest. In his first year of business he spend $1900
on advertising a huge sum that he sold only 8000 gallons of
syrup. In 1905 Bradhum built Pepsi’s bottling plant. By 1907
he was selling 10,000 gallons a year, two years later, he
hired a New York advertising agency. After passing through
many troubles for some period now Pepsi is a market leader
in international arence and is available in 187 Nations
throughout the world in 18 flavors having its Head Office in
New York, United State. Pepsi has 13 bottlers with 26 plants
in India. Through this compared with 60 plants of Coke is
quite less, yet the market share of Pepsi has increased quite
significantly.

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 PEPSI IN INDIA

This $3040 billon, New York (U.S.) based Pepsi Company,


had to start from scratch after entering the country in 1989.
Deep blue Pepsi, is a broad based food and beverage
company, deriving more than 60% of it’s sales and operating
profits from it’s snack foods and restaurant business.

Pepsi started its commercial production in 1990 with plants,


one at Channo (Sangrur) and other at Jahura (Distt.
Hoshiarpur). Pepsi drink, which was introduced six year
back, has now become the household name thought the
country.

The Marketing efforts of Pepsi in the first three year were so


successful, that Pepsi had taken major market share of Parle
and Parle has to face hard times. Pepsi-Cola has been
positioned as a drink for the young. It’s popular slogan “YEHI
HAI RIGHT CHOICE BABY” go to show that appeal is
significantly for the younger generation in a popular, much
aired commercial, Bollywood star Sachin Tendulkar. Began
to cdroon in the tune only after he’d guzzled, the right cola,
made the smart choice (A-Ha!).

Behind the hype in an effort invisible to consumer Pepsi


pumped in Rs. 300 crore to add muscle to its infrastructure in
bottling and distribution.

At present Pepsi is at war with Coke at National level.

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 CADBURYSCHWEPPES

CADBURY SCHWEPPES IN INDIA

May 1995 one more soft drink Cadbury Schweppes entered


the Indian soft drink market and now the competition in this
industry is more due to rise in the number of competition and
also due to large product range that they all are offering to
the market. Cadbury Schweppes, just about two year old in
India udebtufues with the guerilla. Number three in the
aerated soft drink market after Pepsi and Coca-Cola
Company; it is resorting to some very smart footwork to gain
its share of silence.

The company wants to be number one in the non-cola


aerated soft drink market, to which end it has unabashed a
series of tactics. “WE DON’T DIRECTLY HIT COMPETITION
BUT CHOP AT AWAY AT THE ENGED”. Says Ashok Jain
C.E.O Cadbury Schweppes India. The idea is to convert the
narrow scrip to a niche and build it to a position of reverence
with a consumer.

John S. Perberton, who in 1886 first construed coke syrup in


his laboratory, knows little that he had made a formula that
would sell one day to a thirsty market of 13.1 billion dollar
coke drinkers.

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Perberton was morphine addict who was trying to create


marketable patent medicine. When his experiments led to
the new scared Coke formula. He had only modest success
selling Coke in Atlanta and he sold his formula and right for a
pittance. He died in 1888. Atlanta druggist as a Candler who
soon gained control of Coca-Cola is in many way the true
father of coke. He transformed the small time operations in to
a nation wide soda fountain sensation.

Early on, Coke had a distinct cocaine kick, even through


corporate, Coke has long dispute. This piece of America folk
care, saying the coke leaf, was they with the syrup and
training needed to produce distributes and sell the product
and above all the most valuable assent, the trademark.

Also coca-cola’s main revenue stream is from the sale of


concentrate of its bottles. In India, the sole rights the
manufacturer concentrate rests with its 100% subsidiary
coca-cola beverages near Pune.

A unit of concentrate makes 400 cases (of 24 bottles


each) and according to an estimate generates income of Rs.
20 per case for the parent company.

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 Nestlé:

Nestle does not give that tough a competition to Coca-Cola as it


mainly deals with milk products, Baby foods and Chocolates. But
the iced tea that is Nestea which has been introduced into the
market by Nestle provides a considerable amount of competition to
the products of the Company. Iced tea is one of the closest
substitutes to the Colas as it is a thirst quencher and it is healthier
when compared to fizz drinks. The flavored milk products also
have become substitutes to the products of the company due to
growing health awareness among people.

 Dabur:

Dabur in India, is one of the most trusted brands as it has been


operating ever since times and people have laid all their trust in
the Company and the products of the Company. Apart from food
products, Dabur has introduced into the market Real Juice which is
packaged fresh fruit juice. These products give a strong
competition to Maaza and the latest product Minute Maid Pulpy
Orange.

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CHAPTER -9
COCA COLA MARKETING STRATEGIES

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 MARKETING STRATEGY

Our local marketing strategy enables Coke to listen to all the


voices around the world asking for beverages that span the
entire spectrum of tastes and occasions. What people want
in a beverage is a reflection of who they are, where they live,
how they work and play, and how they relax and recharge.
Whether you're a student in the United States enjoying a
refreshing Coca-Cola, a woman in Italy taking a tea break, a
child in Peru asking for a juice drink, or a couple in Korea
buying bottled water after a run together, we're there for you.
We are determined not only to make great drinks, but also to
contribute to communities around the world through our
commitments to education, health, wellness, and diversity.
Coke strives to be a good neighbor, consistently shaping our
business decisions to improve the quality of life in the
communities in which we do business. Marketing strategy a
part of the marketing management process: The marketing
management uses marketing strategies so that they can
meet the customer's needs. The marketing strategyinvolves
pricing, advertising, branding, packaging.

• Some of Coca-Cola’s latest domestic marketing strategies


include Coke dominating fountain sales. Thousands of
consumers visit fast-food restaurants every day and Coke
feels that it is very important to have the consumer see and
drink their product at such chains as McDonalds, Burger
King, and Domino’s Pizza.

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9.1 THE COMPETITIVE AREA AMONG

COKE AND PEPSI

The soft drink market all over the world as been witnessing a
neck-to-neck battle between the two major players; Coca-
Cola and Pepsi since very beginning. The thirst quenchers
are trying hard to have the major piece of the apple of overall
carbonated soft drink market. Both the players are spending
their energies in building capacity, infrastructure, promotional
activities etc.

Coca-Cola, being 11 years older than Pepsi, has been


dominating the scene in most of the soft drink market of the
world and enjoying the leadership terms of the market share.
But the coca-cola people are finding it hard to deep away
Pepsi, which has been narrowing the gaps regularly; the two
are posing threats for each other in every nook and corner of
the world. While coca-cola has been earning most of the part
of its bread and butler through beverages sales, Pepsi has a
multi products portfolio with a handsome portion from the
same business.

The two warriors are face to face once again here in India
with different strategies and policies to attack at rival Coca-
Cola is focusing upon the joint ventures with the existing

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bottlers to enhance its control on manufacturing and


marketing of its product range and attain the quality
standards of its class. Countering its Pepsi has taken the
baton in its own hands by floating and investment of $95
millions to set 6 Pepsin Co. India Holdings, a subsidiary for
company’s owned bottling operation (COBO). Both of the
companies are following different path to reach the same
destiny i.e. to fetch the bigger portion of aerated soft drink
market in India.

Both the competitors have distinct vision and priorities about


the Indian soft drink market. Through having so much
difference and distances with each other, they both consider
India as a huge potential market as per capita consumption
here in more 3 servings per year against an international of
80. Throughout, they are putting their best efforts to woe
Indian consumer who has to work for 1.5 hours to by a bottle
cross over for both the athletes running for getting No.1
position.

Coca-Cola is well set with its 53 bottling sites throughout the


country giving it an edge over competition by possessing a
well built manufacturing and distribution set up on the other
side of picture, Pepsi, with two more year in India, has been
able to set an image of winner this giants are ready to turn
every stone of opportunity with a mindset of long tenure this
time.

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Coca-Cola has been penetrating the market through its


wide product range with a determination to change
competition pattern of soft drink in India. Firstly, they
upgraded the whole industry by introducing 300 ml bottles,
which in turn, had given the industry a booming growth of 20
% as compared to earlier 5%. They want to develop a coca
culture here and are working on a strategy to offer soft drink
in every possible package. In coca-cola camp, the idea of
competition has not come from Pepsi, but from the other
beverages such as tea, coffee, nibu pani, water etc.

Pepsi is quite aggressive in its approach to Indian consumer.


They are desperately working in the strategy to be winner
side in the hot cola war between tow big barons. According
to Pepsi philosophy it’s the madness that encourages
executives to thin to conjure up those creative tactics to
knock the fizz out of their competition. Pepsi had pumped a
large amount on the visibility of its blue-red-and-white logo.
They have been going with aggressive marketing by putting
Sachine Tendulkar and now Shahrukh Khan in their
advertisement to endorses their brand, the role models for its
targeted consumer the teenagers. They have increase the
fizz in the market price by introducing the dispensers called
fountain Pepsi and been enjoying a lead over its rival three.

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Coca-Cola on the other hand, has been working on the


saying ‘skew’ and stead with ‘race’, side by side retailing to
the every move of its competitor. They have produced the
shield of Thums Up with a handsome market share in India
soft drink market. Countering Pepsi; international commercial
that used two chimpanzees to coke a snack at coke, Thums
Up came with the aid line, “Don’t be Bandar, taste the
thunder” Also Thums Up has been positioned now very near
to that of young in age of Pepsi and giving it tuff time.

Everything has been put on fire by these cool merchants. If


Coke got the status of the “Official drink of Wills World Cup”,
Pepsi blushed as “Nothing official about it”. As Thums Up
projected as ‘Saare Jahan Se Achchha’. Pepsi was
passionate enough with ‘Freedom to be’. When Thums Up
came up with ‘Thunder Blast’, the other one offered, Pepsi
‘Stuff Card’. If red color is meant for Coke, Pepsi has chosen
to be Blue. In this way, Indian consumer is getting more fizz
and punch from the two big brothers and he has to given not
about the winner.

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9.2 ADVERTISING

Advertising is non-promotion of goods and services, by


a sponsor (a firm or person) who can be identified and who
has paid for this communication. This purpose of
advertisement is to sell something a good service, idea
person or place, either now or later this goal, reached by
setting specific objective that can be expressed individual
ads. Those are incorporated into an advertising campaign
recall again from the buying decision process that buyers go
through a series of stages from unawareness to target
customers to the next stage in the hierarchy say from
awareness to interest.

Advertisement plays an important role in the success of


coca-cola product since its first newspaper ad. In 1886 that
red, coca-cola delicious “Refreshing Exhilarating”
Invigorating”. Advertisement is a key of implementing a
strategy over one hundred year old to trigger desire as offer
and in as many ways as possible.

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9.3 ADVERTISEMENTS TARGETED BY


COKE

To target various consumer segment of soft drink different


add featuring cricket star, cine star, pop star have been
created.

1.Lisa Ray (famous model) in a very interesting add,


which featuring him bathing with sprite. Having a
catching line “Sprite bujhaye only pyass baki all
bakwaas”.

2.Amir Khan & Ashwarya Rai (both cine stars), which


targeted younger generation. This add Contained
imagery of rugged and romantic for 330 ml of coke.
Theme “ Coca-Cola Ho Jay”.

3.imca leaving its old image of “Lime-n-Limoni” drink is


been shown as in the add. Featuring Shaif Ali Khan. A
drink that could just change the mood at time of
disappointment lines. “Gala Gaya Sookh Limca Key
Liye Ruk”.

4. Fanta Showing children having lines “Bold Ho Jayo”.

5. family giving new look to Maaza “ Tazza Mango”.

6.Diet the exiting add. on the pool with fall swing calling
“Taste The Power Of One Calorie”.

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9.4 PROMOTION BY THE COMPANY

All advertisement expenditure is incurred by coca-cola


India, but only D.P. Board, wall painting, S.G.A.’s etc.
Company spends on it around 8-9 % total sales company
invested 305 crore rupees in advertisement Budget.

p Radio.
p T.V.
p Hoardings.
p Road signs.
p Sticker.
p Neon light.
p Banners.
p Newspaper.
p Magazines.
p Exhibition.
p Posters.
p Sponsoring local events.

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9.5 SOME OTHER TECHNIQUES FOR


PROMOTION OF COCA-COLA COMPANY

Coca-Cola and The Olympic Games

The company's international blitz began in 1926


when company President Robert Woodruff signed Coca-
Cola as a sponsor of the 1928 Olympic Summer Games
in Amsterdam. The U.S. Olympic Team and 1,000 cases
of Coca-Cola arrived at the games by freighter. Since
then, the relationship between the Olympic Games and
Coca-Cola has only grown!

Many Coca-Cola divisions around the world


sponsor individual athletes or teams as well.

1928 was also the first year the Olympic flame was lit,
and women were invited to compete.

1952 -- The Summer Games in Helsinki - Coca-Cola


shipped 300,000 cases of bottles and donated it for sale
by the Disabled Ex-servicemen's Association.

1952 -- The Winter Games in Oslo - The local Coca-Cola


bottler chartered a helicopter for advertising. In 1952
most people had never seen anything like a helicopter
and they were utterly fascinated. At the close of the
games, the helicopter was given to the city to help direct
traffic.

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1960 -- The Summer Games in Rome - Italian bottlers


welcomed athletes, officials and spectators to Rome
with a 45 rpm record of "Arrivederci Roma."

1964 -- The Summer Games in Tokyo - This marked the


first year Coca-Cola aided the athletes, spectators and
media with guide maps, sightseeing information and a
phrase book. The idea was so popular, it was adapted
for use in Mexico City, Sapporo (Japan) and Munich.

1979 -- The Coca-Cola company worked with the


Olympic Committee to create the U.S. Olympic Hall of
fame.

1988 -- The Winter Games in Calgary - Coca-Cola


orchestrated a world children's chorus. Also, Coca-Cola
opened the venue for what would later be deemed the
games number-one spectator sport -- The Coca-Cola
Official Olympic Pin Trading Center.

1996 -- The Summer Games in Atlanta - The Games'


centennial, as sole sponsor of the Olympic Torch Relay,
Coca-Cola brought the flame to more than 350 cities and
towns during the 94-day run.

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Olympic Commemorative Cans

1928 Amsterdam 1948 London

1964 Tokyo 1992 Barcelona

1996 Atlanta 2002

2004 2006

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9.6 SALES PROMOTION TECHNIQUES OF


COMPANY

1. Good Advertising.
2. Effective Incentive Policy.
3. Quality.
4. Wide & Deep Distribution System.
5. Attractive packaging.
6. Allotting SGA’S (Refrigerator, Chest cooler, Table
Umbrella, Chairs etc.) to retailers.
7. Decorating Retailers shop by display board,
dealer’s board etc.

 CRITERIA FOR PROVIDING FREE CHILLING


EQUIPMENTS

With every 1-2 crates purchased daily or alternatively an


icebox is provided.

• For an average consumption of 5-6 crates a


visi-cooler of 4crates.
• For a purchase of 7-8 crates daily visicooler 7
crates.
• If purchase exceeds 8 crates, then 9 crates
visicooler or deep fridger is provided.
• With every chilling equipment a steplizer is
provided it may be of 1 KV or 5 KV.

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9.7 SALES PROMOTION ACTIVITIES

 Coca-Cola Cricket

All part of brand Coca-Cola’s GLOBAL campaign, now


unveiled in India .

Coca-Cola Open Happiness is all about inviting people to


welcome small moments of joy & happiness into their lives-
idea really is to pause, enjoy a bottle of Coca-Cola and also
enjoy life's simple pleasures.

First in the series of the 2009 summer campaign to feature


Gautam Gambhir, leveraging the passion of cricket amongst
the youth

India, one of the first few strategic markets to roll out the
‘Coca-Cola Open Happiness’, follows its immensely
successful launch in the US.

‘Coca-Cola Open Happiness communication initiative in


India, conceptualized by Nakul Sharma (Creative Team
Leader, Copy) and Tirtha Ghosh (Creative Director, Art),
under the supervision of Ashish Chakravarty, Executive
Creative Director, McCann Erickson- Delhi, directed by
Dibakar Bannerjee and produced by Freshwater Films Pvt.
Ltd.

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In-addition to leveraging mass media, the entire


communication effort will be complimented by a range of
initiatives including in store & on- the- ground activation
across all key markets.

According to Indian cricket sensation, Opening Batsman


for Delhi Daredevils and Coca-Cola brand ambassador,
Gautam Gambhir, “It feels great to be associated with brand
Coca-Cola. Coca-Cola has always been associated with
refreshment, happiness and moments of joy. All these are
the qualities that I closely identify with. I look forward to a
very exciting innings with Coca-Cola.”

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 Coca-Cola Concerts

COCA-COLA ZERO™ BRINGS YOU THE BIGGEST


MUSIC FESTIVAL OF 2009 Johannesburg, 21st January
2009 – Coca-Cola Zero™, 5FM and BIG Concerts are
thrilled to announce the first ever COCA-COLA ZERO™
FEST , giving South Africans a taste of life as it should be.

“Coca-Cola Zero™ has taken the market by storm since its


launch in August 2008 - its personality is different. It’s what
consumers least expected, the taste we have always had of
Coca-Cola but with zero sugar. The product is edgy and
innovative – a perfect match for the Coca-Cola Zero™ Fest
artist line up,” said Coca-Cola TM Strategic Marketing
Manager, Zayd Abrahams.

Abrahams said: “Consumers can now believe that


unbelievable things do happen: the brand has a series of
exciting and unexpected initiatives around the Believe It!
Theme, including Coca-Cola Zero™ Fest.”

The Coca-Cola Zero™ Fest will take place at


Johannesburg’s New Market Racecourse on Friday, 10 April
2009 and Cape Town’s Ostrich Farm on Monday, 13 April
2009.

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The Coca-Cola Zero™ Fest will also feature local favourites


like Zebra and Giraffe, The Dirty Skirts, and more to come.

“5FM is very excited to be part of Coca - Cola Zero Fest


2009. Oasis is a legendary band that many of our listeners
grew up listening to and their live performance is sure to be
spectacular. Snow Patrol and Panic! at the Disco have both
had (and continue to have) chart success on 5FM. Coca-
Cola Zero and 5fm look forward to giving our listeners the
chance to see them live in SA at the Coca-Cola Zero Fest.
For a taste of Panic! at the Disco’s live performance, listen to
5FM’s (Live)5 at 5pm on Saturday 24th January”, said 5FM’s
Station Manager – Helen Graham.

Taste life as it should be – Real Coke Taste, Zero Sugar.


Grab Coca-Cola Zero™, tune into 5FM and watch this
space, as we announce more details.

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Chapter – 10

COMPANY’S STATUS

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10.1 Coca-Cola Management

The Coca-Cola brand is one of the world’s most popular and


recognizable. Therefore, Coca-Cola management strategy is
geared towards the continued success of its famous brand.

However, despite a strong brand, management of change


has been necessary at Coca-Cola. The corporate culture
involving a super-brand like Coke can result in managers
becoming overconfident in the product as well as the
processes and procedures that have built up throughout the
company over time. The danger is that the public will simply
get bored with the brand.

Therefore, both Coca-Cola management and Coca-Cola


strategy have undergone radical changes over the years.
When former chief executive Robert Goizueta was at the
helm, he demonstrated that the company was earning less
than its cost of capital. Therefore, he led Coca-Cola through
great change in management structure. By adjusting the way
the businesses and managers were assessed and by
radically reforming key relationships with Coca-Cola bottlers,
Goizueta oversaw spectacular improvement in performance.

However, over the years the Coca-Cola brand strategy has


not always proved successful. The attempted relaunch of the
core product as New Coke in the 1980s was a dangerous
risk and proved almost calamitous, requiring a complete
rethink in Coca-Cola marketing strategy.

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The following articles refer to Coca-Cola and Coca-Cola


management. Use them to learn from the past of Coca-Cola
and the present of Coca-Cola to build a successful future for
you and your own organization.

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 BOARD OF DIRECTORS

1. Mr David M Gonski, AC (Chairman, Non Exec. Director)

2. Mr Terry J Davis (Executive Director, Managing Director)

3. Ms Jillian R Broadbent, AO (Non Exec. Director)

4. Mr Wallace Macarthur King, AO (Non Exec. Director)

5. Mr Geoff Kelly (Non Exec. Director)

6. Mr Irial Finan (Non Exec. Director)

7. Mr David Edward Meiklejohn (Non Exec. Director)

8. Ms Catherine Brenner (Non Exec. Director)

9. Ms Nessa O'Sullivan (CFO)

10. Mr Ken McKenzie (CFO)

Company Secretary: - Mr. George Thomas Forster

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10.2 FINANCIAL STATUS

COCA-COLA FINANCIAL ANALYSIS

TABLE . A Coca-Cola Financial Information

Company Type Public

Fiscal Year-End December

Annual Report Company Web Site

Investor Relations Company Web Site

TABLE . B Coca-Cola Competitive Intelligence

Dr Pepper Snapple Group Nestlé PepsiCo

Annual Sales ($ mil.) 5,700.0 80,715.9 39,474.0

Employees 20,000 265,000 185,000

Market Cap ($ mil.) -- -- 85,635.0

TABLE .C Coca-Cola Income Statement

2007 2006 2005

Revenue ($ mil.) 28,857.0 24,088.0 23,104.0

Gross Profit ($ mil.) 18,451.0 15,924.0 14,909.0

Operating Income ($ mil.) 7,252.0 6,308.0 6,085.0

Total Net Income ($ mil.) 5,981.0 5,080.0 4,872.0

Diluted EPS (Net Income) 2.57 2.16 2.04

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10.3 CASH FLOW OF COCA COLA

TABLE :- A CASH FLOW

View: Annual Data All numbers in thousands

PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Net Income 5,807,000 5,981,000 5,080,000

Operating Activities, Cash Flows Provided By or Used In

Depreciation 1,228,000 1,163,000 938,000

Adjustments To Net Income 1,224,000 - 554,000

Changes In Accounts Receivables 148,000 (406,000) (214,000)

Changes In Liabilities (734,000) 914,000 (99,000)

Changes In Inventories (165,000) (258,000) (150,000)

Changes In Other Operating Activities 63,000 (244,000) (152,000)

Total Cash Flow From Operating Activities 7,571,000 7,150,000 5,957,000

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures (1,968,000) (1,648,000) (1,407,000)

Investments (240,000) 349,000 558,000

Other Cashflows from Investing Activities (155,000) (5,420,000) (851,000)

Total Cash Flows From Investing Activities (2,363,000) (6,719,000) (1,700,000)

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid (3,521,000) (3,149,000) (2,911,000)

Sale Purchase of Stock (493,000) (219,000) (2,268,000)

Net Borrowings 29,000 4,341,000 (1,404,000)

Other Cash Flows from Financing Activities - - -

Total Cash Flows From Financing Activities (3,985,000) 973,000 (6,583,000)

Effect Of Exchange Rate Changes (615,000) 249,000 65,000

Change In Cash and Cash Equivalents $608,000 $1,653,000 ($2,261

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CHAPTER – 11

LATEST UPDATES

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 Coca Cola signs Gautam Gambhir as


brand ambassador

NEW DELHI: Soft drink major Coca Cola has roped in


Gautam Gambhir as brand ambassador for Coke and the
cricketer will be featuring in the company's new campaign to
be rolled out this week.

"It is first in the series of the 2009 summer campaign to


feature Gautam Gambhir, leveraging the passion of cricket
amongst the youth," Coca Cola said in a statement.

The company said the new 'Coca-Cola Open Happiness'


campaign is designed to serve as a platform for all integrated
marketing initiatives for brand Coca-Cola globally.

"India is one of the first few strategic markets to roll out


Coca-Cola Open Happiness after its successful launch in the
US," it added.

On being signed for the campaign, Gambhir, who is also the


opening batsman for IPL team Delhi Daredevils, said, "Coca-
Cola has always been associated with refreshment,
happiness and moments of joy. All these are the qualities
that I closely identify with." The campaign is expected to be
rolled out this week. Talking about the campaign, Coca-Cola
India Director- Marketing Kashmira Chadha said, "In addition
to leveraging mass media, the entire communication effort
will be complimented by a range of initiatives including in-
store and on-the-ground activation across all key markets.

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 Coca-Cola appoints SangeetaPendurkar


as VP 05 March, 2009

Sangeeta Pendurkar has joined Coca-Cola India from HSBC


Bank Middle East as its vice president -- strategy. Pendurkar
will be responsible for providing leadership to Coca-Cola
India’s strategic planning initiatives and the international
trade business.

Prior to joining Coca-Cola India, Pendurkar was working as


the chief marketing officer of HSBC Bank Middle East. She
will report to Atul Singh, president & CEO, Coca-Cola India.

“The per capita consumption of soft drinks is one of the


lowest in the world here. We are at the threshold of a
packaged beverage revolution and a right brand, price, pack
and channel (BPPC) strategy will ensure that we further
penetrate this market and fulfil the daily beverage needs of
our consumers,” said Singh. “Sangeeta will be a key
resource who would help us realize the potential by leading
our strategic planning function.”

Pendurkar began her career with Hindustan Ciba-Geigy Ltd


(currently Novartis India) as a management trainee in 1988
and in a span of eight years moved across various roles in
market research, product development and marketing.
Pendurkar has also worked with Hindustan Lever and with
Kimberly Clark Lever in various capacities in the sales &
marketing

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 Coca Cola bags Golden Peacock award


for CSR

New Delhi, Coca-Cola India has bagged the Golden Peacock


Global Award for Corporate Social responsibility - 2008, for
its efforts in water conservation and management and
community development initiatives.

The award, presented by former Prime Minister of Sweden


and Chairman of the Awards jury Ola Ullsten at the 3rd
Global Conference on Social Responsibility in Vilamoura,
Portugal, was received by Coca-Cola India Vice- President
Public Affairs and Communication Deepak Jolly.

Commenting of the development Coca-Cola India President


and CEO Atul Singh said in a statement, "We are also
establishing the Coca-Cola India Foundation, which will
further strive to make a positive impact on local
communities." The company remains committed to work
with stakeholders and communities across the country in its
bid to contribute to mutual growth and development.

Coca-Cola India has installed 320 Rain Water Harvesting


(RWH) structures in 17 states and has restored several
traditional water bodies and check dams across the country
for water conservation.

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 Coca Cola to keep Pepsi off screen


during IPL matches

New Delhi, Apr 1 2009 Soft drinks major Coca Cola has
pulled off an on-air coup against arch rival Pepsi in the much
anticipated upcoming T20 Indian Premier Leauge (IPL) by
successfully signing as one of the associate sponsors with
broadcaster Set Max.

According to industry sources, Coca Cola has paid anywhere


between Rs 16-20 crore for one year for the series giving it
direct access to prime-time on the channel, enabling the
company to advertise exclusively its entire portfolio during
the 44 day event beginning April 18.

As a result, Pepsi which paid a hefty sum of 12.5 million


dollars (about Rs 50 crore) to become the official on-ground
sponsor, will not be able to air its commercials during the
matches.

Pepsi had recently launched its 'Youngistaan' TV campaign


featuring Shah Rukh Khan, Ranbir Kapoor and Deepika
Padukone for the season, while Coke also introduced a
variety of campaigns for different products featuring Hrithik
Roshan, Aamir Khan and Akshay Kumar.

Pepsi also has leading cricketers, including Sachin


Tendulkar, M S Dhoni, Ishant Sharma and Rohit Sharma, in
its list of brand ambassadors.

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 What’s new in Coca-Cola India2009

Part of the phased launch, Fanta Apple will be initially made


available to consumers in the two Southern Indian States of
Andhra Pradesh & Tamil Nadu,followed by a national roll out
in the next two months the company has also signed up the
young and charmingGenelia D’Souza of ‘Bommarilu’ ‘Boys’
and ‘Jaane Tu YaJaane Na’ fame as the new Fanta Brand
Ambassador.

 Coca-Cola eyes Innocent stake - Soft


drinks - 2009 10/03/09

Coca-Cola is reportedly in discussions with Innocent about


acquiring a stake in the smoothies brand.

Coca-Cola's existing juice brand, Minute Maid, has not made


a significant impact in the UK, despite being a huge seller in
the US.

"Innocent needs the resources to stretch the brand and gain


momentum again," said brand consultant and former
Innocent marketing director Gareth Helm said.

"It would be fantastic for Coke if it could get a stake in such


an established brand in this sector."

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CHAPTER – 12

SWOT ANALYSIS

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SWOT ANALYSIS

STRENGTHS

1. Improved quality control.


2. Latest technology.
3. Heavy investment in both infrastructure and sales
promotion campaigns.
4. Modified and attractive packaging.
5. Strong advertising network.

WEAKNESS

1. Entire infrastructure needs a face-lift.

2. Unskilled labour.

3. Tight case policy.

4. Fear of retrenchment among the workers.

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OPPORTUNITIES

1. Wide market.
2. Good rural market.
3. Direct distribution.

THREATS

1. Stiff competition.

2. Illegal distribution done by some distributors.

4. Changing of consumer preference.

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CHAPTER – 13

DATA FINDING AND ANALYSIS

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 DATA FINDING AND ANALYSIS OF RETAIL


OUTLET

Q. 1 Is a coca-cola cooler present?

As Per The Analysis Coca Cola Coolers were Presents In All The
Retail Outlets were I conducted my survey. As per my findings
coca cola cooler are mostly present in retail outlet who are the
largest seller of coke. The coke company usually setup sales
target for the retail outlet if the target is achieved by the respective
outlet it provide the cooler in kind to the outlets.

Q.2 Is the cooler as per standard?

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As per my analysis,the cooler provided by the coca cola company


were as per the standard.there fore 100% coolers were standard.

Q.3 Is the visicooler in the prime position?

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Yes,most of the biggest outlets usually kept the visi cooler in the
prime position,so as to attract the customer who passed by.

As per my analysis 80% of retail outlets kept thevisi cooler at


prime location.wher as 20% outlets kept visi cooler inside the
store due to non availability of efficient space.

Q.4 Is the visicooler in a working condition?

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Yes,70%visi cooler were in proper working condition.As the


company itself take care of its service and maintenance.

But in case of 30% it was dually neglected,the visicooler was


not properly maintained.

Q.5 Is the visicooler light working?

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Yes 80% of visi cooler light was working and 20% of visi cooler
light was not working to save electricity consumption at the time
of load scheduling.

Q.6 Is the product of coca cola available?

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Its but obivious,every retailoutlet,hotels,restaurants and


colleges has product of cocacola in as a soft drink.

Q.7 Is the product of coca cola in different size available?

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Yes, 90%of retail outlet has different size of coca cola product
like mazza was available in threedifferent size
i.e200ml,1.25l,and pets.
And 10% of retail outlet does not have different size as the
retail outlet was located near school and colleges.

Q.8 Which drink do people prefer in coca cola product in your retail
outlet?

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As per the retailers,coke was in more demand.As 40%of people


prefer coke and 30%prefer sprite. These drinks are mostly
consume by youngster.
Where as Mazza and Kinley soda are in same percentage i.e 10%.

Q.9 Do consumer of Coca cola settles for product of


competitive product?

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As per my findings,if the customer is loyal to a particular


taste or brand then it dose not go for any other brand.
In this case 70%consumers do not settle with a competitive
product.where in the case of 30%the custer switch on to any
other brand available.

Q.10 Which product of competitive product are choosen over


coca cola product?

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As per my analysis Bisleri is among the most demand


product. Hence 40% of consumer switch over to Bisleri.

Mirinda and 7up are in same ratio i.e if in case Fanta and
Sprite are not available 20% of consumer can switch over to
coca cola competitive product.

 QUESTIONAIRE FOR CONSUMERS

Q.1 Gender Of The Consumer?

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As per my sample size 75% were male and 25%were female.

Q.2 Age Group Of The Consumer?

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As per my sample size the age of the consumer below 15 were


30%and age group of15 - 25 were 40%.and from 26 -35 and
above were 15%.

Q.3 Do You Prefer soft drink?

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100% customers were the consumer of soft drink.


As soft drink consist of Mazza, kinley water, sprite etc.

Q.4 Which Brand In Soft Drink Does You Commonly Prefer?

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As per my findings, major consumer was for coca cola that amount
to 60%.and rest for pepsico.

Q.5 Which Product Of Pepsico Does You Generaly Consumes?

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Among pepsico brand pepsi is the highest consumed drink that


consist of 40% .And after that mirinda is the second highest
consume i.e 30%.

Q.6 Which Product Of Coca Cola Does You Generaly Consumes?

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In coca cocla brand the sprite is among the highest saleable drink
i.e 30%.And in coca cola brand mostly all the drinks are highly
consume by the customer.As per my analysis Mazza share25%
and same in the case of 25%coke.

Q.7 Reason To Purchase Coca Cola Drinks?

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The taste is what the consumer generaly prefer hence 45% of the
consumer give more important towards the taste of the Coca Cola
brand.

The second most important factor is price for choosing a particular


drink, hence 40% of consumer feels dually see the price of
particular product as a deciding factor to switch on to that
particular product.

And the third important factor is the bnrand name that is created by
heavly investing in advertisements and pay high amount of perks
to grab the Biggest brand ambassdor.

Q.8 Do The Advertisement Of Cold Drinks Have Influenced You To


Buy?

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85% of respondents as per my analysis are highly influenced by


advertisement.

And 15% have no effect of advertisement. They dually prefer taste


and if the customer is brand loyal he won’t pay more attention
towards the advertisement.

Q.9 Which Soft Drink Advertisement Has An Impact On You To


Buy That Particular Drink?

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45% respondents they are mostly impressed by the pepsi ad. As


their Brand ambassador are Dhoni, Ranveer Kapoor, Priyanka
chopra and etc. who represent the young generation hence it has
major impact on young generation.

CHAPTER – 14

SUGGESTIONS AND RECOMMEDATION:-

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• If the coca cola provide the cooler to its retail outlet


then they should make sure that the coolers size is
according to the space available at the particular outlet.
They should also look that the cooler are kept at the
prime location to attract the consumer.
• Coca cola should frequently make attempt to see that
the cooler which is provided to the outlet the consumer.
• It should make sure that every size of coca cola
product should be available to each and every outlet,so
that consumer cannot switch to the competitive
product.
• They should sign somebody who can motivate the
young generation like sportsperson,filmstar.they can
frequently updates the advertisement and make
marketing strategy aggressive like:-their should be
more creativity in advertisement andincrease their
sponsorship.
• They can increase their product range such as

New flavours as per the consumer tasteand more health


drinks

CHAPTER - 15

CONCLUSION

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• As per my findings, coca cola provide coolertoevery


outlet which sell its product and it make sure that the
coolers were in working condition so,frequently
servicing and maintenance was done by the coca cola
company.
• The visi cooler should be at prime location so, that
customer get attracted and buy the coca cola product.
• I would like to conclude that coca cola product was
available in different size in different outlet to fulfill the
desire of various consumer.
• Most of the customerof the coca colabrand who prefer
the tacte of coke and consumers loyal towards coca
cola product did not switch off to other competitive
brand but then in case of non availability of any coca
cola product consumer do not find difficulties to switch
to any other brand.
• As per the survey the males are the highest consumer
of the soft drink and the age group 15 – 25 are
consuming more soft drink and after that its below15
age group,hence the target consumerof the soft drink
are young generation.

• As per my findings sprite was highest consumable


drink among the coca cola product and all the other
oca cola product are highly consume as the number of
ratio is usually same.

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• The customer while choosing drink emphasis on its


taste and after the a give preference to price.
• In 21st century advertisement plays a big role to create
a brand awareness and product awareness. Hencethe
population is influenced by advertisement of a
particular product.
• As pepsico has a brand ambassador like MAHINDER
SINGH DHONI who is currently captain of Indian
cricket team and cricket is worship in India hence he
represent the youth icon in country.

So coca cola company should make an attempt to replace


someone who is more competitive.

CHAPTER - 16

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REFERENCE SECTION

16.1QUESTIONNAIRE

 QUESTIONNAIRE FOR RETAIL OUTLET


RETAIL OUTLET NAME :-

ADDRESS:-

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PHONE NO:-

Q.1 Is a coca-cola cooler present?

yes no
Q.2 Is the cooler as per standard?

yes no
Q.3 Is the visicooler in the prime position?

yes no
Q.4 Is the visicooler in a working condition?

Working Not working


Q.5 Is the visicooler light working?

yes no
Q.6 Is the product of coca cola available?

yes no

Q.7 Is the product of coca cola in different size available?

Yes No
Q.8 Which drink do people prefer in coca cola product in your retail
outlet?

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Sprite Mazza

coke kinley soda

kinley water others

Q.9 Do consumer of Coca cola settles for product of


competitive product?

yes No

Q.10 Which product of competitive product are choosen over


coca cola product?

Mirinda Slice

7up Dukes

Bisleri

 QUESTIONNAIRE FOR CONSUMERS


NAME:-

Q.1 GENDER OF THE CONSUMER?

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MALE FEMALE

Q.2 AGE GROUP OF THE CONSUMER?

BELOW 15 15-25

26-35 36&above
Q.3 DO YOU PREFER SOFT DRINK?

YES NO

Q.4 WHICH BRAND IN SOFT DRINK DO YOU COMMONLY


PREFER?

COCA COLA PEPSICO

Q.5 WHICH PRODUCT OF PEPSICO DO YOU GENERALY


CONSUME?

MIRINDA PEPSI

SLICE 7UP
Q.6 WHICH PRODUCT OF COCA COLA DO YOU GENERALY
CONSUME?
COKE SPRITE

FANTA MAZZA

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Q.7 REASON TO PURCHASE COCA COLA DRINKS?


BRAND NAME TASTE

PACKAGING PRICE

Q.8 DO THE ADVERTISEMENT OF COLD DRINKS HAVE


INFLUENCED YOU TO BUY?

Yes No
Q.9WHICH SOFT DRINK ADVERTISEMENT HAS AN IMPACT
ON YOUTO BUY THAT PARTICULAR DRINK?

COCA COLA PEPSI

SLICE SPRITE

Q.10 AS A CONSUMER WHAT NEW YOU SUGEST FOR


COCA COLA DRINKS?

………………………………………………………………………
………………………………………………………………………
…………………………………………………………………

16.2 APPENDIX

16.2a ANNEXURE : 1 CASE STUDY

 COCA-COLA CASE STUDY

INTRODUCTION

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The Coca-Cola Company has been in operation since 1886.


They use many selling techniques to encourage consumers
to buy their products. The selling techniques the Coca-Cola
Company uses include product development, product
promotion, product differentiation, product pricing and
product enhancement. These selling techniques are of
varying effectiveness and have been adjusted over time to
appeal to changing societies.

PRODUCT DEVELOPMENT

When the Coca-Cola Company first began in the early


twentieth century, the only product it manufactured was
Coca-Cola. Throughout the past 100 years, the Coca-Cola
Company has diversified their range, creating a larger variety
of products to effectively appeal to a wider market. The
Coca-Cola Company has done this partly because Coca-
Cola was originally marketed as thirst-quenching
refreshment, and when society became aware that Coca-
Cola was not really the best drink for quenching your thirst,
the Coca-Cola Company needed to allow for this. To meet
the needs of health conscious consumers, the Coca-Cola
Company developed Pump, a spring water brand. Powerade
appeals to sporty people and ‘Winnie the Pooh’ juice is likely
to appeal to young children.

PRODUCT PROMOTION

Advertising

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Throughout the time that the Coca-Cola Company has been


in operation, they have adapted their advertisements to
appeal to and meet the needs of changing societies. One
slogan that is common to many Coca-Cola advertisements is
“Drink Coca-Cola”. This slogan was first used in 1886 and
has remained a part of the Coca-Cola advertising campaign
to this day, which is somewhat indicative of its effectiveness.
The use of the imperative verb ‘Drink’ persuades consumers
to purchase and enjoy the product.

In 1943, during World War II, the Coca-Cola Company


designed a poster advertisement featuring enemy soldiers
enjoying Coca-Cola together. This poster advertisement
communicated the message that Coke breaks down conflict
and brings people together. This message was also
communicated with the slogan “high sign of the friendly
hearted”. This advertisement was effective because it took a
contemporary issue (war) and presented Coke as a solution
to this problem.

The Coca-Cola Company has used sex appeal to sell their


products. One advertisement the company designed
featured a boy and a girl enjoying Coca-Cola together. A
relationship was implied, and the slogan ‘Coke puts you at
your sparkling best!’ implied that drinking Coke somehow
made you more appealing to the opposite sex. The message
that Coke is around during good times was also
communicated.

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The aforementioned advertisement is not particularly


effective at promoting and selling Coca-Cola, as informed
consumers can see through the implied message that Coca-
Cola makes you more attractive to the opposite sex. The
advertisement may have been effective in appealing to the
consumers of that time (the advertisement was published
during the 1950s), but for today’s society the advertisement
is too tame. If the Coca-Cola Company wishes to use sex
appeal in their advertising campaigns in future, they need to
adapt their message to suit today’s society. Perhaps they
could recruit real actors to star in their advertisements, rather
than using cartoons, and to appeal to today’s consumers,
have these actors wear less layers of clothing than the
cartoon figures.

PRODUCT DIFFERENTIATION

The unmistakable curved bottle shape has been a part of


Coke’s image since the original glass contour bottle was
designed in 1915, then introduced to the United States in
1916. Back in 1915, soft drink bottles were normally the
same shape no matter what drink they contained – the only
feature to distinguish one brand from another was the label.
Keeping soft drinks cold was typically accomplished by
leaving them in an ice box, which often lead to the label
becoming wet and sliding off. People were then unable to
distinguish between brands. An innovative employee had a
bright idea – what if Coca-Cola had a unique bottle shape?
People could find their favourite soda in the ice box by feel;
the days of confusion would be over.

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Evidently, the shape of the bottle Coca-Cola is sold in is a


classic example of effective product differentiation. No other
brand of cola is available in quite the same shaped bottle, so
consumers can instantly recognise the beverage. Also, as
the Coca-Cola bottle shape is so unique and original,
consumers may see it as superior to generic brands that
have a plain, unoriginal bottle shape. The labelling of Coke
products also differentiates them – red, a highly stimulating
colour attracts the consumer’s attention, and the font ‘Coca-
Cola’ is printed in is fancy and more appealing than the
simple, plain fonts generic brands such as ‘You’ll Love Coles
Cola’ use.

PRODUCT PRICING

As has already been established, the Coca-Cola Company


sells a wide range of products (primarily beverages) to
effectively meet the needs of different consumers. The Coca-
Cola Company sells beverages of different sizes, ranging
from individual 375 millilitre bottles to 2 litre bottles.
Sometimes buying the larger bottles of Coke or other Coca-
Cola brand soft drinks involves a significant saving.
Supermarkets may mark down the price of 2 litre bottles, but
leave the price of smaller bottles unchanged. This selling
technique is very successful. Consumers, realising the
saving that can be made by buying the 2-litre bottle of Coke,
are more likely to purchase the larger bottle. As you are
getting more for your money, any informed consumer would
opt for the larger bottle.

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PRODUCT ENHANCEMENT

The Coca-Cola Company enhances their product by


developing different Coke products targeted to specific
markets, e.g. Classic Coke to appeal to consumers who like
the original product and Diet Coke to appeal to health
conscious consumers. Making more variety available is a
clever and effective way of appealing to a wider market.
Improved packaging, i.e. bottles and cans (the consumer has
a choice), also enhances the Coke product. The modern
packaging of Coca-Cola Company beverages also has the
advantage of being recyclable – which may attract
consumers who have environmental concerns.

CONCLUSION

The Coca-Cola Company runs a successful marketing


campaign, effectively attracting consumers’ attention to its
products through advertising. The Coca-Cola Company also
employs a range of other effective selling techniques as part
of its marketing campaign, including product development,
product differentiation, product pricing and product
enhancement

16.2b ANNEXURE : 2 ARTICLES

 Coca-Cola sales up 28%

13 Feb 2009, ECONOMIC TIMES

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New Delhi: Coca-Cola on Thursday reported a 28% growth


in unit case volumes for India for the October-December
quarter. This is higher than the third quarter when the
company had reported 18% unit case volume growth.

 Coca-Cola India launches 'Fanta Apple'

FEB,ECONOMICS TIMES

HYDERABAD: Beverages major Coca-Cola on Thursday


announced the launch of a new variant for its fruit flavoured
brand Fanta and has roped in Telegu cine-star Genelia
D'Souza as its brand ambassador.

The drink, Fanta Apple, is being launched in a phased-


manner, starting with the southern states of Andhra Pradesh
and Tamil Nadu followed by a national-roll out in the next two
months, Hindustan Coca-Cola Beverages Private Limited
Vice-President (Marketing) Venkatesh Kini told reporters
here.

"Fanta Apple would be retailed across 35,000 outlets in the


two states in the launch phase," HCCBPL Region Vice
President (South) Deepak Kaul said.

The new variant would be available in 200 ml and 300 ml


returnable glass bottles (RGB) priced at Rs 8 and Rs 10
respectively. In addition, it would also be available in a
mobile 500 ml PET pack priced at Rs 22.

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 Coca-Cola unit sales rise 18%21 Oct 2008,

ECONOMICS TIMES

NEW DELHI: Riding on an improved route-to-market


strategy, strong marketing and revamped bottling, Coca-Cola
India has reported an 18% increase in More Pictures unit
case volume sales in the July-September quarter over the
previous corresponding quarter.

This is Coca-Cola’s highest growth in unit case volumes


since the pesticide controversy took a huge toll on soft drink
sales 2003 onwards. The Q3 performance caps nine
quarters of consistent growth for the cola company’s Indian
arm.

The results, announced by the soft drink maker’s Atlanta


headquarters last week, (ET has the India numbers),
mentions that brands Coca-Cola and Maaza grew in double
digits in India.

Apart from juices, growth has also come from sparkling


beverages.

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The growth has been led by a combination of factors. The


company’s route-to-market strategy for improved stock
management from the manufacturing unit to the market,
setting up depots and servicing them and beefing up its
sales-distribution network is working well while ongoing
investments are being infused in cooling and infrastructure
development and setting up new manufacturing lines.

Initiatives such as the 1.25-litre fridge pack (an industry first)


at Rs 35 and new SKUs across brands, improving
distribution and penetration, tapping new points of sales,
adding key accounts, merchandising and stepping up point-
of-purchase visibility and growth of modern trade which has
boosted PET sales have all contributed to growth.

Additionally, bottling arm Hindustan Coca-Cola Beverages


(HCCB)’s restructuring exercise aimed at buying out excess
capacities of bottles and realigning idle bottling capacities,
which it embarked upon two years back as part of a $250-
million revamp, is nearing completion.

Coca-Cola India President & CEO Atul Singh said: “We


continue to work closely with our bottling partners to take
action to drive sustainable growth.

Our ability to proactively address the rapidly changing


economic environment exemplifies the strength of the Coca-
Cola system.” According to research firm AC Nielsen’s data,
Coca-Cola brands have a huge lead over rival PepsiCo
across categories, as reported by ET earlier.

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It was in the third quarter in 2006 that Coca-Cola first


reversed two years of negative quarterly growth, when it had
reported 4% increase in unit case volumes after an over 20%
decline in the corresponding year-ago period. Strategies
such as focus on driving profitability instead of pushing
volumes and splitting up bottling and marketing have borne
fruit.

Globally, Coca-Cola has announced a 14% increase in third


quarter profit compared to last year, driven mainly by
international operations. The quarter saw the company post
eight consecutive quarters of double digit growth.

16.3 BIBLIOGRAPHY

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www.cokeiindia.com
www.coca-colaindia.com
www.google.com
www.wikipedia.org

TEXT BOOK:

MARKETING MANAGEMENT: -
1. KOTLER AND KOTLER.
2. MARKETING MMANAGEMENT S.H.H.KAZMI
3. MODERN MARKETING MANAGEMENT P.P.SINGH
&J.N.JAIN
4.STRATEGIC MANAGEMENT ANDERSON VINCZE

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