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Coca-Colas biggest bottling arm in India posts lowest

sales & profit growth in 3 years


Sagar Malviya & Ratna Bhushan, ET Bureau Feb 10, 2014, 03.00AM IST

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Atlanta

(The maker of Thums Up and)

NEW DELHI | MUMBAI: The biggest bottling arm of the world's largest beverage maker Coca-Cola in
India has posted its lowest sales and profit growth in three years, indicating that much as in the rest of the
world consumers in the country are moving away from sugar-laden fizzy drinks.
Hindustan Coca-Cola Beverages (HCCB) has declared sales growth of 17.6% for 2013, down from about
23.6% in the previous year, according to its updated filings with the Registrar of Companies.
The maker of Thums Up and Sprite drinks took a beating in its profitability as well, with profits down to
about Rs 278 crore from nearly Rs 377 crore.

With over two dozen plants across India, HCCB accounts for about 65% of Coca-Cola's bottling
operations in India.
Three bottling industry veterans attributed the pressure on profitability to the heavy discounts offered to
retailers. "Coca-Cola is selling at heavy discounts, not just in modern trade but at big mom-and-pop
grocery stores as well... it is playing a clear volumes game," said a top Gurgaon-based retailer, who did
not wish to be named.
A Coca-Cola spokesman, however, exuded confidence that the downward trend would be just a shortterm phenomenon.
"HCCB is investing in supply chain and front-end capabilities aggressively and ahead of the curve to
capture the market potential. While this sometimes skews the performance figures in the short term, we
believe that these investments will help us grow both top line and bottom line in medium to long term," the
spokesman said in response to ET's query.
Coca-Cola India has been struggling to return to double-digit growth in volumes over the past one year. In
the key April-June quarter - which traditionally accounts for close to half of the annual beverage sales the company had last year posted sales volume growth of just 1%, its slowest in five years and down from
20% in April-June 2012. The company blamed the sharp deceleration on heavy and extended monsoon.
Its growth did pick up in the July-September quarter, but the rise of 6% was still much slower than 15% in
the corresponding quarter of the previous year.
The Atlanta-based parent firm has not yet declared its earnings for October-December 2013. The
beverage maker had two years ago started selling Coke at an unprofitable 8 for 200-ml returnable glass
bottles in mostmarkets across the country.
Coke is the only drink in the company's portfolio that sells at 8. "This ( 8) clearly dents profits. But the
company wants to push the American brand Coke ahead of its other brands, including its acquired brand
Thums Up," said an associate, who works closely with the beverage maker.
However, Coke continues to trail behind Thums Up and Pepsi cola brands in terms of market share.

Coca Cola
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Strategic Alliances For Reentry Into Abandoned Markets:


A Case Study Of Coca- Cola In India
Dinker Raval and Bala Subramanian
INTRODUCTION
The current trend of internationalization of business and the global movement towards free trade
has created an intriguing and unique trend of multinationals reentering markets which they once
left or abandoned. In such reentry scenarios, strategic alliances across borders offer an attractive
option to recapture former market positions.
The cases in point are those of Coca-Cola and IBM reentering the Indian market that they once
left. Similar situations can be found in South Africa, which was abandoned by companies
opposed to the apartheid policy, and countries, which formed the now defunct Soviet Union,
which had historically excluded or expelled foreign businesses.
REVIEW OF LITERATURE
A careful review of literature in International Business and International Marketing reveals
considerable work on strategic options for entering foreign markets and on the use of strategic
alliances in international markets. Two prominent models, which have become a part of the
strategic guidance framework for multinationals to enter foreign markets, are provided by
Franklin Root (Root 1994) of the University of Pennsylvania and Warren Keegan's Product/
Communication model (Keegan 1995).
The Franklin Root Model suggests export, contractual and investment modes as entry options
into foreign markets and provides a range of alternatives in each category. The Keegan model
emphasizes twin criteria of product and communication variables and their variations as entry

strategies in the international markets. Michael Porter has given a seminal analysis of
interrelationships between competitors (Porter 1985) and a framework for strategic alliances is
set forth by Bonoma and Kosnik (Bonoma and Kosnik 1990). Since the phenomenon of reentry
is fairly recent, literature searches in the areas of strategic management and marketing reveal
very little work with enough theoretical foundation on issues relating to reentry into abandoned
markets.
DIFFERENCES BETWEEN ENTRY AND REENTRY
There are significant differences between the decisions to enter a market for the first time and
reenter the same market after a time lapse. These differences are as follows:
1. The motivation for reentry is different from that of entering a foreign market for the first time.
While the initial entry may be motivated by growth, expansion, profitability or similar motives,
the motives for reentry may include these and some others. The reentering firm may want to
overcome reasons for abandonment, recapture market presence and recoup financial losses
resulting from the abandonment.
2. The residual mindshare from the previous market presence needs to be recognized, evaluated
and leveraged. In case of initial entry, this opportunity or problem does not exist.
3. If negative images, attitudes and perception persist from its earlier presence, the reentrant
needs to neutralize or nullify such negative factors and revitalize and restore the product and
corporate images in the minds of the markets and governments.
4. The reentrant is faced with the need to rekindle dormant brand images, brand loyalty and
corporate images and rejuvenate them to leverage its reentry.
5. The reentering firm may have accumulated knowledge and expertise of the abandoned market
that can be an asset in reestablishing competitive advantage in a timely fashion. An initial entrant
lacks this advantage and has to undergo a time consuming learning process.
6. The terms and conditions of reentry can be different compared to those of initial entry.
Differences can occur because of changed political or value systems as in the former Soviet bloc
countries and South Africa. The difference in terms can be also the outcome of a political
renegotiating process such as the one experienced by Coca-Cola in India.
7. Changes in the competitive structure of the host country can also result in differences in the
terms of reentry. In the former Soviet bloc countries, closed and monopolistic supply and
distribution structures are being replaced with more open and competitive arrangements.
8. The reentrant is faced with the question of reviving old strategies or to modify them in light of
the changed market environment. In countries where drastic changes in market or value systems
have occurred, the reentrant may have to develop totally new strategies.
9. The reentrant is approaching the abandoned market with a mindset that was developed in an
earlier and possibly different era. A new entrant is free of such encumbrances and can develop its
strategic options starting with a clean slate.

Reentry scenario is thus significantly different from an initial entry situation. A reentrant may
have to take into account these dissimilarities in order to succeed under reentry conditions.
THE PURPOSE
The purpose of this paper is to examine the role of strategic alliances in reentering abandoned
markets, using Coca-Cola's reentry into India as a case in point. The paper explores the rationale
for reentry, identifies variables that influence reentry strategies, examines strategic alliances as a
tool in promoting successful reentry and proposes a conceptual model for reentry.
THE CASE STUDY OF COCA-COLA
A study was conducted in 1995 to assess factors critical to the reentry of Coca-Cola in India. It
evaluated factors that had the potential of becoming problems or opportunities to Coca-Cola on
its reentry and the strategy used by Coca-Cola to reenter and reposition itself in the Indian
market. A specially designed emic survey instrument (Dillon 1993 and Choudhry 1986) designed
to minimize cross-cultural bias. Out of 400 questionnaires distributed in New Delhi, Madras,
Mumbai and Ahmedabad, 270 responses were received and analyzed. This was supplemented by
a personal interview with Coca-Cola's CEO in Mumbai, India.
COCA-COLA'S EXIT SCENARIO
When Prime Minister Indira Gandhi lost power in 1977, her regime was replaced by a
government that was not too friendly to foreign investors. The new government asked Coca-Cola
to reduce its stake of ownership to 40% and sell the majority interest to local investors.
Compliance with the demand would have jeopardized Coca-Cola's secret formula that the
company had jealously guarded since its inception. Nowhere else in the world Coca-Cola
corporation had shared the secret formula which is the key to its uniqueness and success. Not
surprisingly, Coca-Cola rejected the demand. It spent $2 million in grinding up its bottles and
left this promising market. Coca-Cola's explanation for its departure was that sharing ownership
for manufacturing syrup was not consistent with their overall global business strategy.
REENTRY SCENARIO AND STRATEGY
In June 1993, Coca-Cola received approval from the Indian government to operate a wholly
owned subsidiary for beverage blending operations to supply licensed bottlers in India. This was
a dramatic reversal of Indian government's earlier stand that precipitated Coca-Cola's departure.
The changed environment of liberalization and move towards free markets called for a strategy
for reentry different from what Coca-Cola had used to enter the market initially.
The initial step in the reentry strategy was the appointment of a U.S. educated and trained
executive of Indian origin who had successfully fought off Pepsi in Egypt to spearhead the
reentry effort. This executive had exposure and insight into high context cultures like those of
India and Japan as well as low context cultures like the U.S. Such cross-cultural experience
provided insights into the behavior of consumers, distributors and government decision makers.

Coca-Cola's strategy was to openly recognize and reciprocate the change in the government's
attitude. Coca-Cola reciprocated by creating a strategic alliance with Indian counterpart, Parle. It
agreed to upgrade bottling plants in India utilizing state of the art technology, promote ownership
of retail outlets by the handicapped and other socially disadvantaged groups.
Another initial strategic choice made by Coca-Cola in India was to forge a strategic alliance with
Parle-Export. Parle is the foremost soft drink company in India with a formidable distribution
infrastructure and over 60% of the soft drink market share in India. Parle agreed to introduce
Coca-Cola, Fanta and Sprite in the Indian market. In return, Coca-Cola agreed to facilitate the
export of Parle's products in overseas markets. This strategic alliance brought together the leader
of the soft drink industry in India and global leader in soft drinks.
MARKET MEMORY AND AWARENESS OF REENTRY
A primary poll conducted in four major urban centers in India found that while indigenous
national brands enjoyed a high level of public acceptance, Coca-Cola and Pepsi ranked fifth and
sixth respectively in terms of brand recall. This suggested that despite a sixteen-year absence,
Coca-Cola enjoyed some degree of residual brand awareness. A very high proportion of the
respondents were aware of Coca-Cola's return to India.
LENGTH OF AWARENESS
The poll revealed a hard core of soft drink consumers who were aware of Coca-Cola brand for a
long period as a result of its prior market presence. Coca-Cola's long absence had not diminished
the brand recall. A whole new generation which grew up without Coca-Cola is gradually being
exposed to the brand offering Coca-Cola the high potential for converting this brand awareness
to brand preference.
COCA-COLA'S BRAND AND CORPORATE IMAGE IN INDIA
The poll revealed that an overwhelming proportion of the respondents had retained a positive
image of Coca-Cola Company and the brand. They also felt that Coca-Cola's local competitors
can learn from its way of doing business. This affirmed the public perception of Coca-Cola, its
brand, quality and its methods of doing business all enjoyed high esteem.
PERCEIVED REASON FOR ABANDONMENT
The public perception of the reasons why Coca-Cola left India was not focused on any single
cause. Though a variety of causes were cited, a majority of the respondents had the right idea as
to the real causes for Coca-Cola's departure from the Indian market. This was indication of a
high public interest in Coca-Cola.
MARKETING MIX STRATEGIES
Coca-Cola reintroduced its products first in Agra, the city that houses the Taj Mahal,
symbolizing India's historical heritage. The event was slated for Dusserah, an important day in
the Indian calendar symbolizing victory. In choosing Agra as the city where the reentry rollout
strategy was kicked off, Coca-Cola displayed sensitivity to India's culture.

PRODUCT AND BRAND POSITIONING


Coca-Cola's reentry strategy involved positioning itself as a catalyst in the Indian market. It
aimed to expand the size of the overall market for soft drinks by promoting Coca-Cola not only
as a soft drink but as a beverage in India's large rural market and offering Coca-Cola as a
substitute to tea, coffee, and fruit juices. The strategy stressed increased penetration in urban
markets and expansion into untapped rural markets.
Reentry positioning of the product was done by maintaining Coca-Cola's image as an
international drink but at the same time, indianizing its appeal. To reassure Indian consumers that
nothing has changed during its absence, Coca-Cola offered reintroduced product as the classic
coke in the widely recognized Georgia-green glass refillable bottles.
PRICING
Coca-Cola designed its pricing policy based on the concept of penetration pricing and lowering
the price to gain market share. Coca-Cola prepared its initial pricing package as value for money
by charging only 5 rupees per 300 ml. bottles compared to 6 rupees per 200 ml. bottles by
competitors.
DISTRIBUTION
By forging a strategic alliance with Parle, India's largest soft drink producer and distributor,
Coca-Cola was able to convert a formidable competitor into an ally. It gained instant access to a
critical mass of distributors and their facilities. In return, Coca-Cola agreed to modernize their
plants to meet Coca-Cola's international standards while essentially maintaining its Indian
character.
PROMOTION
The essence of Coca-Cola's promotional strategy was to take full advantage of the high level of
brand recognition and positive image that it enjoyed in India from its earlier presence. This was
accomplished by combining its internationally recognized logo with vernacular scripts and the
reintroduction of the familiar Georgia green bottle. This combination was aimed to revive
dormant memories of the brand and to reassure the market of its original quality and image.
IMPLICATIONS FOR REENTRY
Coca-Cola's experience in India indicates that reentry strategy is guided by motives that differ
from initial entry strategy. The process starts with the identification of objectives for reentry in
relationship to reasons for exit and abandonment of a market.
A critical issue shaping reentry strategy is whether there are significant changes in conditions in
the abandoned market. The Indian government had adopted liberalization policies. This
prompted Coca-Cola's decision to reenter the lucrative Indian market.
Coca-Cola responded to the change by assuring that it would contribute to market expansion,
economic development and employment in India. Both the Indian government and Coca-Cola

reciprocated to meet each other's needs. This strategy of mutual needs satisfaction and
reciprocity has proved to be the cornerstone of the reentry strategy.
Another ingredient contributing to the effective reentry is the selection of leader as the architect
for reentry. Coca-Cola's selection of an executive of Indian origin with multi-cultural experience
and multi-disciplinary background facilitated Coca-Cola's reentry.
A critical part of reentry strategy is overcoming changes that occurred in the market during the
absence and bridge the gap created by lost time, markets and consumers. The strategic alliance
with the Parle group that was a dominant player in the Indian soft drink helped Coca-Cola to
gain instant access to the mainstream market and turned a formidable potential competitor into
collaborator.
A significant element of reentry is testing of consumer memory, reinforcing confidence and
leveraging it into product and brand acceptance. Cultural sensitivity and empathy are essential
ingredients in any reentry strategy. Coca-Cola's reentry strategy displayed sensitivity to and
understanding of the Indian psyche that has facilitated the reacceptance of the brand by the
Indian market.
A MODEL FOR REENTRY
Based on a study of Coca-Cola's reentry in India, it is possible to develop a general conceptual
model for reentry that is different from the traditional initial entry models. Compared to initial
entry, motives, conditions and preferred strategic modes for reentry can be different.
The development of reentry strategies needs considerable care and planning, as compared to
initial entry strategies for which precedents and planning models and guidelines are available.
The strategy for reentry will be impacted by the circumstances of exit, motives and conditions of
reentry as well as the opportunities and obstacles in the market.
The elements of the reentry model include selection of the architect for reentry, reciprocal
recognition of mutual needs by the reentrant as well as the host country, strategic alliances for
gaining market share and instant access, testing dormant market perceptions and brand memories
as well as tactics to create cultural understanding and empathy.
Based on Coca-Cola's experience, the preferred organizational mode for reentry appears to be the
wholly owned subsidiary. This provides control to the reentrant while maintaining flexibility
demanded by market and environmental differences in the host country. The parent organization
should provide the subsidiary with an adequate resource base to obtain rapid entry, access to
market infrastructure and renewal and refurbishing of the brand image.
FIGURE I
A Conceptual Model of Reentry
Motivation
Strategic Elements Preferred reentry mode

Overcoming reasons for abandonment Careful selection of architect for reentry Wholly owned
subsidiary with local alliances
Recognition of changes which occurred during absence Reciprocal recognition of mutual needs
by MNC and host country Mutual need satisfaction
Bridging the gap in the minds of consumers and markets created by departure Strategic alliances
for instant access Agreements with strategic partners
To enhance and expedite reentry
Reinforcement of original brand and product images and memories Testing dormant market and
brand memories Promotional campaigns leveraged to revive dormant market memories
Regaining early market acceptance Cultural understanding and empathy Combination of global
standards with local culture and language
Mutual need satisfaction is an underlying theme governing strategic alliances. Mutual need
satisfaction is also the motivation in shaping the relationship between the reentrant and the host
country. The reentry strategy should facilitate maintenance of world-class standards while
providing enough flexibility to meet variations in local tastes and preferences as well as cultural
imperatives.
This attempt to conceptualize and develop a reentry model will contribute to the understanding
of differences between entry and reentry and provide opportunities for discussion and
refinements.
BIBLIOGRAPHY
Hamel, G., Doz, Y. L., Prahlad, C.K. 1989 Collaborate with Your Competitors and Win.1989.
Harvard Business Review. (January/February).
Jorde, T.M., Teece, D. J. Acceptable Cooperation Among Competitors in the Face of Growing
International Competition. Antitrust Law Journal. (58) Pp.529-57.
The Real Thing, The Real Story - An Exclusive Account of How Coca-Cola India President
Jayadev Raja Plans to Challenge Pepsi.1993. Business Today. (November 7-21).
When Companies Tie the Wrong Knot. 1986. Business Week. (July 21).
REFERENCES
Bonoma, T.V. and Kosnik, T.J. 1990. Marketing Management. Irwin. Pp.428-429 and 517.
Choudhry, Y.A. 1986,Winter. Pitfalls of International Marketing Research: Are you speaking
French like a Spanish Cow? ABER 17(4), pp.18-28
Dillon, W.R., Madden, T.J. and Firtle, N.H. 1993. Essentials of Marketing Research. Irwin.
Keegan, W. 1995. Global Marketing Management. Prentice Hall. Pp.489-496.

Porter, M. E. 1985. Competitive Advantage. The Free Press. Pp.361-363.


Root F. R. 1994 Entry Strategies For International Markets. Lexington Books. Pp.22-44.

Coca-Cola leaders recently took center stage to talk about growth where it is and where it will be
at the annual Consumer Analyst Group of New York (CAGNY) conference. Last weeks investor
forum was held in Boca Raton, Fla. Gary Fayard, Chief Financial Officer, Ahmet Bozer,
President Coca-Cola International and Steve Cahillane, President Coca-Cola Americas were on
hand to provide an overview of our business and how our Company is investing for the future.
Fayard opened the presentation with a progress report on our 2020 Vision, telling analysts that three
years into our journey weve exceeded growth targets for global volume, operating income and

earnings per share. He pointed out these gains have come despite one of the most difficult macroenvironments in recent history.
Fayard also noted the strength of the Companys cash flow, saying the Company has generated
over $30B in cash from operations in the past three years.
That capital is continually re-invested in the business, because reinvesting in our system is what
drives sustainable, long-term value creation.
Fayard called NARTD beverages a vibrant, high growth industry, fueled by an emerging global
middle class with increasing spending power and an increasing appetite for convenience and
packaged goods. He acknowledged continuing economic headwinds in different markets, but said
the opportunities for growth at all levels, whether incremental or exponential, remain abundant.
Acknowledging theres no one-size-fits-all solution to capturing volume, Fayard walked analysts
through several recent and pending transactions our partnership with Coca-ColaFEMSA in the
Philippines and the mergers of bottlers in Brazil, Iberia (Spain and Portugal) and Japan to illustrate
how our system steadily evolves to improve our capabilities and create long-term value.
Fayard was followed by Bozer and Cahillane, who provided detailed analysis of their respective
groups.

Investing Together for a Better Tomorrow CocaColaInternational


Bozer reviewed operating highlights in the Europe, Eurasia and Africa, and Pacific groups. He said
Europe is positioned to capture profitable growth despite near-term economic headwinds. He
described it as the largest NARTD retail value pool in the world, a market where weve gained
share in the last three years, have the top three sparkling brands (Coca-Cola, Coke
Light and Fanta), and where were still just beginning to build our still beverage portfolio. He said the
Company is also well-positioned to see new growth once the regions economic conditions improve.
Japan, China and India were among the highlights in the Pacific. Bozer spotlighted three years of
record sales in Japan for example, where we have the number one share in sparkling, coffee and
sports drinks. In China, Sprite is the number one sparkling brand and Coke was recently rated most
favorite brand as well. Fanta is also a strong performer, having passed 100 million unit cases.
Bozer said the opening of two new bottling plants in China also shows the continued belief of our
franchise system in the Chinese opportunity.
For all the strength of Japan and China, India may hold even greater promise.

The opportunity in India is actually multiplied when compared to China, Bozer explained, because
existing India per capita consumption is more or less one-third of the existing per capita consumption
of China, so we have a much bigger runway to grow there.
Bozer rounded out his comments with a discussion of Eurasia & Africa, saying the region has seen
nine percent volume growth since the beginning of our 2020 Vision and continues to present
opportunities over the next eight years as it evolves and urbanizes. He singled out Russia as a
particularly bright spot. Brand Coca-Cola grew 20% there last year and is now seeing its highest
market share in history. Our Company will further strengthen our position with numerous activations
during next years Winter Olympic Games in Sochi, Russia.

Investing Together for a Better Tomorrow CocaColaAmericas


Steve Cahillane took the podium after Bozer to discuss Coca-Cola Americas. The group, consisting
of North America and Latin America, includes 950 million people, representing approximately half of
our Companys volume.
For North America, Cahillane said a clear and consistent focus has led to 11 consecutive quarters
of growth. He said although North America is a developed market, opportunity still exists thanks to a
projected population increase of 30 million people in the U.S. between 2010 and 2020. Their
demographics young and diverse also favor our business.
He said our Company is confident we can leverage that opportunity thanks to the strength of our
brands, particularly Coca-Cola. Its preferred two times over our primary competitors brand, and that
preference continues to grow. Beyond Coca-Cola, Cahillane also highlighted the strong performance
of our Juice and Juice Drinks and Sports Drinks in North America.
Cahillane told investors our North America business gained both volume and value share in both
sparkling and still beverages, as well as across all major still beverage categories in 2012.
This, he emphasized, is what a winning portfolio looks like.
Cahillane also touched on efforts to accelerate system investments and reiterated our commitment
to raising consumer awareness around calorie balance and active, healthy lifestyles.
He rounded out his presentation with a discussion of Latin America, which he said is a source of
sustainable growth that continues to offer tremendous opportunities.
While we have seen strong growth in our two largest markets, Mexico and Brazil, the reality is that
every one of our Latin America business units has delivered sustainable and balanced growth over
the last three years.

Cahillane pointed to the success of Del Valle as just one example. Its become the number one Juice
brand in Latin America, while also rising to the number one position in the category in Mexico as
well. He also said Powerade continues to see accelerated growth in the market, and is on track to
become the Sports Drink category leader in Latin America by 2020.
In closing out the Coca-Cola presentation, Fayard reiterated to the analysts the Companys faith in
its ability to meet its 2020 goals, noting our results tell a story that goes beyond volume gains.
We continue to take share, and it is not just volume. It is value share. So our focus is on creating
long-term value for our shareowners. We think we have been delivering, and we expect to continue
delivering that throughout the remainder of our 2020 Vision.

At the core of our business in India, as in the rest of the world is our production and distribution network, which we
call the Coca-Cola system. Globally, the Coca-Cola system includes our Company and more than 300 bottling
partners. The Coca-Cola Company manufactures and sells concentrate and beverage bases. Our authorized bottlers
combine our concentrate or beverage bases as the case may be with sweetener (depending on the product), water or
carbonated water to produce finished beverages. These finished beverages are packaged in authorized containers
bearing our trademarks -- such as cans, refillable glass bottles, non-refillable PET bottles and tetra packs -- and are
then sold to wholesalers or retailers. In India, additionally, the Company also sells certain powdered beverage mixes
such as Vitingo.
Our beverages reach our ultimate consumers through our customers: the grocers, small retailers, hypermarkets,
restaurants, convenience stores and millions of other businesses that are the final points of distribution in the CocaCola system. What truly defines the Coca-Cola system, and indeed what makes it unique among businesses, is our
ability to create value for our customers and consumers.
In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely CocaCola India Pvt Ltd which manufactures and sells concentrate and beverage bases and powdered beverage mixes, a
Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen licensed bottling partners
of The Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages under certain
specified trademarks of The Coca-Cola Company; and an extensive distribution system comprising of our customers,
distributors and retailers. Coca-Cola India Private Limited sells concentrate and beverage bases to authorized
bottlers who use these to produce our portfolio of beverages.These authorized bottlers independently develop local
markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other
businesses. In turn, these customers make our beverages available to consumers across India.
Coca-Cola
Diet Coke
Coke Zero
Thums Up
Sprite
Fanta
Limca
Maaza
Minute Maid Pulpy Orange
Minute Maid Nimbu Fresh
Minute Maid Guava
Minute Maid Apple
Minute Maid Mango
Minute Maid Mixed Fruit

Minute Maid 100% Juice Grape


Minute Maid 100% Juice Apple
Minute Maid 100% Juice Orange
Burn
Kinley Water
Kinley Soda
Schweppes
GEORGIA Gold

INTRODUCTION The Coca-Cola Company, incorporated on September 5, 1919, is a beverage


company. Its current CEO is Mr. Muhtar Kent. The Company owns or licenses and markets more
than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still
beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and
coffees, and energy and sports drinks. It owns and markets a range of nonalcoholic sparkling
beverage brands, which includes Coca-Cola, Diet Coke, Fanta and Sprite. The Company markets,
manufactures and sells beverage concentrates, sometimes referred to as beverage bases, and
syrups, including fountain syrups, and finished sparkling and still beverages. Outside the United
States, it also sells concentrates for fountain beverages to its bottling partners. The Company sells
sparkling beverages and a variety of still beverages, such as juices and juice drinks, energy and
sports drinks, ready- to-drink teas and coffees, and certain water products, to retailers or to
distributors, wholesalers and bottling partners who distribute them to retailers. The Companys core
sparkling beverages include Coca-Cola, Sprite, Fanta, Diet Coke / Coca-Cola Light, Coca-Cola Zero,
Schweppes, Thums Up, Fresca, Inca Kola, Lift and Barq's. Its energy drinks include Burn, Nos and
Real Gold. Its juices and juice drinks include Minute Maid, Minute Maid Pulpy, Del Valle, Simply, HiC, Dobriy and Cappy. The Companys other still beverages include glaceau vitaminwater and Fuze.
The Companys coffees and teas include Nestea teas, Georgia coffees, Leao

3. / Matte Leao teas, Dogadan teas and Ayataka teas. Its sports drinks include Powerade and
Aquarius. The Companys waters include Ciel, Dasani, Ice Dew, Bonaqua and Kinley. The Company
competes with PepsiCo, Inc., Nestle, Dr Pepper Snapple Group, Inc., Groupe Danone, Kraft Foods
Inc. and Unilever.
4. COMPANY HISTORY This is the remarkable story about the evolution of an iconic brand and the
company that bears its name. Since its birth at a soda fountain in downtown Atlanta, Georgia, in
1886, Coca - Cola has been a catalyst for social interaction and inspired innovation. These unique
moments in history, arranged in chronological sequence, have helped create a global brand that
provides billions of moments of refreshment every day. 1886 May 8. Coca-Cola is created by John
S. Pemberton and served at Jacobs Pharmacy. Nine drinks a day are sold during this
year.Company accountant, Frank Robinson, names the drink Coca - Cola, and thinking the two Cs
would look well in advertising, pens the famous Spencerian script logo. 1887 Coupons are first used
to promote Coca-Cola.John Pemberton registers his Coca-Cola Syrup and Extract label as a
copyright with the U.S. Patent Office. 1892 Asa Candler, who began to acquire The Coca-Cola
Company in 1888, finalizes the purchase and incorporates The Coca-Cola Company as a Georgia
Corporation.An advertising budget of $11,000 is authorized.
5. 1898 The first building is erected for the sole purpose of housing The Coca-Cola Company. It is
quickly outgrown as the Company moves to larger quarters five times in the next 12 years. 1904 The
first advertising for Coca-Cola appears in national magazines.Annual sales of Coca-Cola hit the 1
million-gallon mark.Lillian Nordica, noted opera singer, begins to endorse Coca - Cola and appears
in nationwide advertising in 1905. 1909 The Coca-Cola Bottler magazine begins publication and is
produced for more than 80 years. 1911 The annual advertising budget for The Coca-Cola Company

surpasses $1 million for the first time. 1916 Asa Candler retires from the Company to successfully
run for mayor of Atlanta.

6. 1919 The first bottling plants are opened in Europe in Paris and Bordeaux.The Coca-Cola
Company is purchased by a group of investors led by Ernest Woodruff for $25 million. 1921 The first
employee publication, The Friendly Hand, begins publication. The first use of the slogan Thirst
Knows No Season helps transition Coca- Cola from a summer beverage to one enjoyed year-round.
1927 The Company begins sponsoring its first radio program, Vivian the Coca- Cola Girl. 1928 The
Company begins its long-term association with the Olympic Games by supplying drinks from kiosks
surrounding the venues in Amsterdam. 1930 The Coca-Cola Export Corporation is created to market
Coca-Cola outside the United States. 1931 Seeking to create an advertising program that links
Coca-Cola with Christmas, artist Haddon Sundblom creates his first illustration showing Santa Claus
pausing for a Coke. For the next three decades, from

7. 1931 to 1964, Sundblom paints images of Santa that help to create the modern interpretation of
St. Nick. 1936 The 50th anniversary of Coca-Cola is celebrated. Artist N. C. Wyeth creates the
calendar for that year. 1945 Coke becomes a registered trademark of The Coca-Cola Company.
1965 The Coca - Cola Company and its bottlers sponsor the first animated television special for the
cartoon strip Peanuts, A Charlie Brown Christmas. 1970 Coca-Cola introduces its first sports drink
when Olympade is test marketed in the United States. The packaging features a logo for the U.S.
Olympic Committee. 1976 The Coca - Cola Company and the Fdration Internationale de Football
Association (FIFA) agree to the first-ever sponsorship between a company and an international
sports governing body. 1982

8. The Coca - Cola Company purchases Columbia Pictures Industries, Inc. While the Company
owns the movie studio, Gandhi wins an Academy Award for best picture. 1995 The Coca-Cola
Company acquires the Barqs root beer brand. 1998 The Coca-Cola Company announces a
100- year partnership with the National Basketball Association. 2001 The Coca - Cola Company and
Nestl create a new company, Beverage Partners Worldwide, to market ready- to-serve coffee and
tea beverages. 2007 The new World of Coca - Cola opens at Pemberton Place in Atlanta. The CocaCola Company acquires Energy Brands Inc. (glacau), maker of vitaminwater and smartwater. 2008
Sponsorship of the Beijing 2008 Olympic Games connects with more than 500 million consumers in
China.A Coca-Cola Facebook page is established by two fans. The site has over 22 million fans
worldwide as of January 2011 and continues to grow.

9. 2010 In the aftermath of a devastating earthquake, The Coca - Cola Company launches the Haiti
Hope Project, a public-private initiative that aims to develop a sustainable mango industry in Haiti.
2011 The Coca-Cola Company celebrates 125 years of brand Coca-Cola.

10. MISSION VISION AND VALUES OF COCO-COLA Mission: Its Roadmap starts with a mission,
which is enduring. It declares its purpose as a company and serves as the standard against which
they weigh their actions and decisions. - To refresh the world. - To inspire moments of optimism and
happiness. - To create value and make a difference. Vision: Their vision serves as the framework for
their Roadmap and guides every aspect of their business by describing what they need to
accomplish in order to continue achieving sustainable, quality growth. - People: Be a great place to
work where people are inspired to be the best they can be. - Portfolio: Bring to the world a portfolio
of quality beverage brands that anticipate and satisfy people's desires and needs. - Partners:
Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable
communities. - Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities. - Productivity: Be a highly effective, lean and fast-moving organization. Winning
Culture: Their Winning Culture defines the attitudes and behaviors that will be required for them to
make their 2020 Vision a reality.

11. Values: Their values serve as a compass for our actions and describe how they behave in the
world. - Leadership: The courage to shape a better future - Collaboration: Leverage collective genius
- Integrity: Be real - Accountability: If it is to be, it's up to me - Passion: Committed in heart and mind
- Diversity: As inclusive as our brands - Quality: What we do, we do well Focus on the Market: Focus on needs of consumers, customers and franchise partners. - Get out into the market and
listen, observe and learn - Possess a world view - Focus on execution in the marketplace every day
- Be insatiably curious - Work Smart - Act with urgency - Remain responsive to change - Have the
courage to change course when needed - Remain constructively discontent - Work efficiently - Act
Like Owners

12. COCA-COLA IN INDIA The Coca-Cola Company re-entered India through its wholly owned
subsidiary, Coca-Cola India Private Limited and re-launched Coca-Cola in 1993 after the opening up
of the Indian economy to foreign investments in 1991. Since then its operations have grown rapidly
through a model that supports bottling operations, both company owned as well as locally owned
and includes over 7,000 Indian distributors and more than 2.2 million retailers. Today, its brands are
the leading brands in most beverage segments. The Coca-Cola Company's brands in India include
Coca-Cola, Fanta Orange, Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Minute Maid Pulpy
Orange, Minute Maid Nimbu Fresh and the Georgia Gold range of teas and coffees and Vitingo. In
India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company
namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and beverage bases and
powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-Cola
Beverages Pvt Ltd; thirteen licensed bottling partners of The Coca-Cola Company, who are
authorized to prepare, package, sell and distribute beverages under certain specified trademarks of
The Coca-Cola Company; and an extensive distribution system comprising of our customers,
distributors and retailers. Coca-Cola India Private Limited sells concentrate and beverage bases to
authorized bottlers who are authorized to use these to produce its portfolio of beverages.These
authorized bottlers independently develop local markets and distribute beverages to grocers, small
retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make
their beverages available to consumers across India.

13. COCA-COLAS CONTRIBUTION TOWARDS GDP The Coca-Cola system in India has already
invested USD 2 Billion till 2011, since its re-entry into India. The company will be investing another
USD 5 Billion till the year 2020. The Coca-Cola system in India directly employs over 25,000 people
including those on contract. The system has created indirect employment for more than 1,50,000
people in related industries through its vast procurement, supply and distribution system. They strive
to ensure that the work environment is safe and inclusive and that there are plentiful opportunities for
the people in India and across the world. The beverage industry is a major driver of economic
growth. A National Council of Applied Economic Research (NCAER) study on the carbonated softdrink industry indicates that this industry has an output multiplier effect of 2.1. This means that if one
unit of output of beverage is increased, the direct and indirect effect on the economy will be twice of
that. In terms of employment, the NCAER study notes that "an extra production of 1000 cases
generates an extra employment of 410 man days." As a Company, its products are an integral part
of the micro economy particularly in small towns and villages, contributing to creation of jobs and
growth in GDP. Coca-Cola in India is amongst the largest domestic buyers of certain agricultural
products. As an industry which has strong backward and forward linkages, its operations catalysis
growth in demand for products like glass, plastic, refrigeration, transportation, and Industrial and
agricultural products. Its operations also lead to incremental growth for enterprises engaged in postproduction activities like merchandising, marketing and sales. In addition,

14. they share best practices and technological advancements with its suppliers, vendors and allied
industries which often lead to improvement in the overall standards of quality across industries. The
Coca-Cola Company has always placed high value on good citizenship. The Coca-Cola India

Foundation is now taking forward in the community at large, projects and programs of social
relevance to carry forward the message of inclusive growth and development.

15. SWOT ANALYSIS OF COCA-COLA STRENGTHS: 1.The number one beverages brand in terms
of reach and sales. 2. Popular subsidiary brands like Coca Cola, Fanta, Kinley, Limca, Maaza,
Minute Maid, etc. 3. Global reach with presence in over 200 countries. 4.More than 500 brands on
offer. 5.An employee strength of around 1,50,000 people globally. 6.Strong and efficient supply
chain network, ensuring that all the products are available even in the most remote places. 7.Strong
financial condition. 8.Strong brand recall through advertising and marketing by associating with
celebrity brand ambassadors. 9.CSR activities in the field of water conservation and recycling,
education, health etc. 10. Effective and efficient packaging technique giving emphasis on recycling
and reusing. 11. Long association with international sports events, sponsorships etc.
WEAKNESSES: 1.The presence of traces of pesticides in the cola beverages have caused damage
to the brand image. 2.Strong competition in the aerated drinks segment from Pepsi Co means
constant fight over market share. 3.No presence in the snacks and food industry. OPPORTUNITIES:

16. 1.Increase its reaching untapped countries and market. 2.Market and popularize the less known
products. 3.Acquire other companies. 4.Diversify its product portfolio by entering into snacks industry
to compete with Pepsi Co. THREATS: 1.Health consciousness amongst people. 2.Difficulty in
complying with different government regulations and norms in different countries. 3.Inflation,
economic slowdown and instability. 4.Strong competition.

17. PRODUCTS COCA-COLA DIET COKE THUMS UP SPRITE FANTA LIMCA MAAZA MINUTE
MAID PULPY ORANGE MINUTE MAID NIMBU FRESH MINUTE MAID GUAVA MINUTE MAID
APPLE MINUTE MAID MANGO MINUTE MAID MIXED FRUIT KINLEY WATER KINLEY SODA

18. BRAND LOCALISATION STRATEGY: THE TWO INDIAS India A: Life ho to aisi India A, the
designation Coca-Cola gave to the market segment including metropolitan areas and large towns,
represented 4% of the countrys population.This segment sought social bonding as a need and
responded to aspirational messages, celebrating the benefits of their increasing social and economic
freedoms. Life ho to aisi, (life as it should be) was the successful and relevant tagline found in
Coca-Colas advertising to this audience. India B: Thanda Matlab Coca-Cola Coca-Cola India
believed that the first brand to offer communication targeted to the smaller towns would own the rural
market and went after that objective with a comprehensive strategy. India B included small towns
and rural areas, comprising the other 96% of the nations population. This segments primary need
was out-of-home thirst-quenching and the soft drink category was undifferentiated in the minds of
rural consumers. Additionally, with an average Coke costing Rs. 10 and an average days wages
around Rs. 100, Coke was perceived as a luxury that few could afford. Cokes advertising and
promotion strategy pulled the marketing plan together using local language and idiomatic
expressions. Thanda, meaning cool/cold is also generic for cold beverages and gave Thanda
Matlab Coca- Cola delicious multiple meanings. Literally translated to Coke means refreshment,
the phrase directly addressed both the primary need of this

19. segment for cold refreshment while at the same time positioning Coke as a Thanda or generic
cold beverage just like tea, lassi, or lemonade. As a result of the Thanda campaign, Coca-Cola won
Advertiser of the Year and Campaign of the Year in 2003. COCA-COLAS ADVERTISING
STRATEGY IN INDIA Coca Colas Campaign The Coca Cola campaign in India, however, has been
different from that of Pepsi, even though they both share similar product traits. Coca Cola had a
presence in India before 1977, but was subsequently forced to exit the Indian market. When the
company returned to India post liberalization, it came up with an innovative communication and
advertising strategy. Coca Cola has essentially been following the principle of differentiation. Coca
Cola Jo Chaaho Ho Jaaye, Coca Cola Enjoy was one of the companys first campaigns in India.
It was remarkably well executed, and appealed both at a product level as well as at an emotional

level. These ads featured celebrities such as Hrithik Roshan and Aishwarya Rai. The target segment
for Coca Cola in its initial days was the youth segment and this campaign clearly connected well with
the segment. However, the next advertising campaign of Thanda Matlab Coca Cola was launched
with an objective to have a

20. mass appeal. The campaign leveraged the product platform rather than the emotional platform
that it had established earlier. It is however, important to note here that Coca Cola made some
exceptions for India. The company has similar marketing strategies across geographies and usually
doesnt depend on celebrity endorsements. But given the great fan-following, and in adapting to the
Indian context, the company had to initially deviate from its set charter. However with the current
campaign of Open Happiness, Coca Cola seems to have achieved both an emotional as well as a
mass appeal. There is a very natural connect with the target segment, that of celebrating every day,
and sharing small moments of joy with our loved ones, irrespective of any barriers. Sprite Sprite - the
other brand from the Coca Cola stable began its journey with the campaign titled All Taste No
Gyaan. This appealed greatly to the youth who dont like to be preached and relish their sense of
ownership and decision making. Sprite has never depended on celebrity endorsements as a way to
gain brand recognition or consumer recall. The ads are designed to be very witty, and generally
connect very well with the target audience by capturing every day moments. Seedhi Baat No
Bakwaas - its next campaign instantly connected with the target audience by coming across as a
brand

21. that was different from the other, one that focused on the individuality of the consumer. The
emotional appeal is much stronger and shows a clear sign of maturity of the campaign.
CONCLUSION Coca-Cola operates in more than 200 countries. Because of the local nature of its
business, it is in the unique position to contribute to the economic vitality of even the most remote
communities around the world. Its global business stimulates job creation throughout our value
cycle. It contributes to the economic success of each community by employing local people; paying
taxes to governments; paying suppliers for goods, services and capital equipment; and supporting
community investment programs. Past independent studies on the economic impact of its business
in Asia, Africa and Eastern Europe have consistently shown that for every job in the Coca- Cola
system, an average of 10 more jobs are supported in local communities. To produce the world's best
known product, The Coca-Cola Company has to employ the highest quality processes and establish
standards which guarantee the production of a standardised product which meets consumers' high
expectations each and every time they drink a bottle or can of Coca- Cola. In order to guarantee
these standards the Company has had to develop a close relationship with its franchisees based on
a mutual concern for quality. Total Quality Management lies at the heart of this process involving a

22. continuous emphasis on getting quality standards right every time and on continually seeking
new ways to improve performance. Coca-Cola has spent over $2 million just on advertising and
marketing. This makes Coca-Cola well known in many countries In addition, keeping up with today's
new trends, the Coca-Cola Company also advertise its products on myspace, facebook and twitter.
The Coca-Cola Company knows that no business can run without a plan. Because the Coca-Cola
Company has been able to the set the entry barrier in the beverage business very high, new
companies are discourage to compete with Coca-Cola. In addition, the Coca- Cola Company has
agreements with many of its supplier (mostly bottling company) to exclusively provide by their
services to Coca-Cola. Thus, it is almost impossible for new comers to keep up with Coca-Cola and
similar competitors with recognized names in the business such as Pepsi. The Coca- Cola success
isn't something that has been achieved over night. Many years has passed since John Pemberton
created the secret formula for Coca-Cola in 1886. Who would have thought that after over a hundred
years, his creation would have this much impact in the world and turn Coca-Cola into a worldwide
recognized company

A CONCEPTUAL FRAME WORK OF MARKETING STRATEGIES IN COCACOLA


Abstract
This study empirically examined the marketing strategies in coca-cola. Specifically, this study seeks to investigate
the relationship between the marketing approach and international image of the company. The brand development
strategy of Coca Cola comprised redesigning of its brand development policies and techniques to keep up with the
changing mindset of its consumers. A part of the brand building technique is also to enhance "purchase frequency".
The company has also invested in various advertisement campaigns often engaging the services of celebrities around
the globe. In addition to the consumers, there is another category of consumers, who increase the consumer base and
they constitute the collectors of the brand. At Coca-Cola, they have a long standing belief that everyone who touches
their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve
success, recognition and loyalty worldwide.
Keywords: -Brand Building, Brand Image, Brand Loyalty, Customer Loyalty, Customer Satisfaction, Marketing
Strategy.

1. Introduction
Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending machines of more than 200
countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a
registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as
a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by
businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market
throughout the 20th century. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers
throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished
product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then
sell, distribute and merchandise Coca-Cola to retail stores and vending machines. Such bottlers include Coca-Cola
Enterprises, which is the largest single Coca-Cola bottler in North America and Western Europe. The Coca-Cola
Company also sells concentrate for soda fountains to major restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most
common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola
Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee.
In response to consumer insistence on a more natural product, the company is in the process of phasing out E211, or
sodium benzoate, the controversial additive used in Diet Coke and linked to DNA damage in yeast cells and
hyperactivity in children. The founder of coca cola was John Dock Pemberton in 1886 when he experimenting with
cocaine and wine. The founder of the name coca cola was Frank Robinson. The Coca-Cola Company is the world's
largest beverage company, refreshing consumers with nearly 500 sparkling and still brands. Globally, they are the
primary provider of sparkling beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the
world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages
at a rate of nearly 1.6 billion servings a day. With an enduring commitment to building sustainable communities, the
Company is focused on initiatives that protect the environment, conserve resources and enhance the economic
development of the communities where they operate.

2. Marketing Strategies
In order to achieve this mission, Coca Cola create value for all the constraints it serve, including consumers,
customers, bottlers, and communities.
The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs:

-alcoholic ready-to-drink beverages they want to drink throughout


the day.

1. Strategic planning:
In past years, the company had a great success, as the strategy worked which resulted in making Coca Cola
Company the world's leading company.
Company accomplished the crust of its strategy as,
Worldwide volume increased by 4 percent with strong international growth of 5 percent.
Earnings per share grew by 82 percent.
Return on common equity grew from 23 percent to 38 percent this year.
Return on capital increased from 16 percent in 2000 to 27 percent.
The company has generated free cash flow of $3.1 billion, up from $2.8 billion.
The marketing strategy for the future is as follows:
Accelerate carbonated soft-drink growth, led by Coca-Cola.
Selectively broaden the family of beverage brands to drive profitable growth.
Grow system profitability and capability together with our bottling partners.
Serve customers with creativity and consistency to generate growth across all channels.
Direct investments to highest potential areas across markets.
Drive efficiency and cost-effectiveness everywhere.
2. Strategies of quality
After Micro and macro analysis Brand "coke" is primarily role
1. Enhance competition moments
2. When people watch cricket
3. Through commercialization
4. Fun time
3. Expanding target market
In last 2 years Coke has come back in aggressive manner.
Consumer has choice
Attractive brand name
Brand differentiating
Consumer Has Got Choice:
Now the consumer has got choice. Because now they know the name of another big brand, though coke is the 2nd
best name but it can get a better position after some time
Attractive Brand Name:
Now the consumers know the Name of Coke, because Coke is the name, which is the most popular after the word
"ok". So people can better differentiate brands with each other.
Brand Differentiation:
Now different companies have got different brand names. So, people can distinguish between brands. Two major
brands "coke" and "Pepsi" also have brand names.
4. Strategies of getting goals:
To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can
increase the profits. Some major ways are as follows.
Volume can be increased
Interest level of consumers
To take part in energetic festivals
5. Marketing strategy:
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 Pakistan 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.
6. Price strategy:
Trade Promotion:
Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free
empty bottles, by this these retailers and middle man push their product in the market following "Seen as sold"
Different Price in Different Seasons:

Sometimes Coca Cola Company changes their product prices according to the season. Summer is supposed to be a
good season for beverage industry in Pakistan.
So in winter they reduce their prices to maintain their sales and profit.
7. Promotion strategies:
Getting shelves:
They get or purchase shelves in big departmental stores and display their products in those shelves in attractive style.
Eye Catching Position:
Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally
they keep their freezers near the entrance of the stores. G.J.C.M.P.,Vol.3(1):153-157 (JanuaryFebruary,2014) ISSN:
2319 7285

155

Sale Promotion:
Company also do sponsorships with different college and school's cafes and sponsors their sports events and other
extra curriculum activities for getting market share.
Development Strategy of Coca Cola:
Brand development strategy of Coca Cola has been far reaching and has managed to remain in the limelight ever
since it became a favorite with the non alcoholic drinkers. It has been noticed that brand loyalty is an important
factor in maintaining the number one position. The article below suggests the various brand building techniques of
the company.
Founded in the year 1886, the Coca Cola company enjoys the status of being one of the biggest non alcoholic
beverage companies of the world. It has a distribution system, which makes it unique from the rest of the non
alcoholic beverage manufacturers. Over the years, Coca Cola has passed several tests of brand enhancement and the
company makes it a point that the products under the banner Coca Cola continue to invade the minds of the
consumers.
The brand development strategy of Coca Cola comprised redesigning of its brand development policies and
techniques to keep up with the changing mindset of its consumers. Earlier, this brand believed in the following:

However, this brand development strategy of Coca Cola was re worked to stress on the following instead:

The essence of brand building of the company lies in the fact that it wants its consumers accessibility to be "within
an arm's reach of desire". In an attempt to build its brand identity, as many as 20 brand attributes are tested every
month involving as many as 4000 customers. The brand development strategy of Coca Cola is effective as it has
been able to construct, manage as well as maintain its brand image since yesteryears.
Another reason why this brand has gained unanimous acceptance all around the globe is due to the fact that it has
been able to connect very well with its consumers. This implies brand loyalty. Brand loyalty has been instrumental
in keeping up the brand image of Coca Cola. It believes in shelling out the best so that the consumers are retained by
default. A part of the brand building technique is also to enhance "purchase frequency". The company has also
invested in various advertisement campaigns often engaging the services of celebrities around the globe. In addition
to the consumers, there is another category of consumers, who increase the consumer base and they constitute the
collectors of the brand. The collectors usually indulge in collecting old as well as upcoming logos of Coca Cola,
bottles and literary matter. With regard to the brand development of Coca Cola Zero, the company came out with an
advertisement, which was quite different from the conventional ones. In this regard, (no calorie beverage), it has
shelled out three types of products.

There are few experts who believe that when Coca Cola had the tag line of "The Real Thing", it was really that but
with the invention of various categories of coke, the "real thing" changes to "many things", and the original flavor is
usually lost. Hence, the brand building strategies should be such that it does not confuse people and is able to retain
consumers despite the fact that several new non alcoholic beverage firms are on the anvil.

3. Marketing Approach
Both the Coca-Cola and Pepsi try to market as part of a life-style. Coca-Cola uses phrases such as "Coke side of
life", while Pepsi uses phrases such as "Hot stuff", to promote the idea that Pepsi is "in sync" with the cool side of
life. Pepsi tries to reach out to the younger generation by appealing to pop culture. Coca-Cola's is less flashy and
uses a classical appeal, most likely because of Coca-Cola's long history as the standard for cola beverages.
The operation review according to the segments is as follows:
So the volume is least in the Africa and most in the North America. The data about the market share of this company
area wise is given in the following table.

The above table shows the geographical earning of the Coca Cola Company and from this data; we can find out that
the customers of Coca Cola are increasing which is shown by the companys per capita income. Unit case equals 24
eight-ounce servings. The column, which shows the non-alcoholic beverages consist of commercially, sold
beverages, as estimated by the Company based on available industry sources. The country column is derived from
the Company's unit case volume while the industry column includes nonalcoholic ready-to-drink beverages only, as
estimated by the Company based on available industry sources.
In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2 billion and the average
consumer enjoys close to two servings of our products each month. Through an intense focus on Coca-Cola,
innovation and new beverages, the company has achieved volume growth of 10 percent in 2002. With developing
economies and G.J.C.M.P.,Vol.3(1):153-157 (JanuaryFebruary,2014) ISSN: 2319 7285
156

populations, this region has strong long-term potential, and the company is building an exciting family of beverage
brands in addition to expanding the popularity of our core brands, led by Coca-Cola. In China, for example, sales of
Coca-Cola increased 6 percent.
Fig.1 Coca colas international revenue

4. International image of the company


The founder of coca cola was John Dock Pemberton in 1886 when he experimenting with cocaine and wine. The
founder of the name coca cola was Frank Robinson. The Coca-Cola Company is the world's largest beverage
company, refreshing consumers with nearly 500 sparkling and still brands. Globally, they are the No.1 provider of
sparkling beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the world's largest
beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate of
nearly 1.6 billion servings a day. With an enduring commitment to building sustainable communities, the Company
is focused on initiatives that protect the environment, conserve resources and enhance the economic development of
the communities where they operate.

5. National image of the company


Coca-Cola 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. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap
of 16 years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the
top soft drink brands of the nation. With access to 53 of Parles plants and a well set bottling network, an excellent
base for rapid introduction of the Companys International brands was formed. The Coca-Cola Company acquired
soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as these products had
achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of CocaCola in 1993.Thus these products became a part of range of products of the Coca-Cola Company.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 bottling arm of the Coca-Cola Company.
However, this was based on numerous commitments and stipulations which the Company agreed to implement in
due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its
shareholding in favor of resident shareholders by June 2002. Coca-Cola is made up of 7000 local employees, 500
managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee
Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of
a range of products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets
and 8000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with
help of technology and skills within the company. The complexity of the Indian market is reflected in the
distribution fleet which includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers
that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts. Think local,
act local, is the mantra that Coca-Cola follows, with punch lines like Life ho to aisi for Urban India and Thanda
Matlab Coca-Cola for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in
urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the
new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new
market accounted for over 80% of Indias new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief
that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the
Company to achieve success, recognition and loyalty worldwide. G.J.C.M.P.,Vol.3(1):153-157 (January
February,2014) ISSN: 2319 7285

157

6. Future Prospects
The focus seems to be on mobile marketing services in the Indian marketplace. Realizing the significance of this
mode of marketing, marketers are increasingly opting for mobile marketing techniques to connect with their target
audiencedirectly. And with around 33 million subscribers in the country, the concept of mobile marketing is
rapidly gaining momentum, observe new media analysts.
For instance, Coca-Cola India is planning to launch an aggressive SMS-based campaign to promote its new launch
Coke Vanilla along with its mass media advertising plans within a few days. Recognizing the potential of this
medium, Coke had in fact initiated a host of SMS-based promotions almost two years ago, informs Coca-Cola India
director (marketing) Mumbai Sharda Agarwal.

7. Conclusion
Recent research shows that Coca-Cola is the largest consumer brand name in the world. The popularity of the
product means that most of the populations globally know about the product. As a result, Coca-Cola is now in a
position where it does not have to spend as heavily on creating a brand image since it is a very established
product.Coca Cola has various methods of packaging such as can, plastic bottles, glass bottles etc. This means that
Coke has enough variety within is product packaging range to meet the various demands of its consumers.Due to the
high caffeine level and the distinct taste and brand image, the customer loyalty for Coke is very high. Coke is
perceived as the most premium product within the cola industry.

8. References
1. Biswas, A., & Sen, A. (1999), Coke vs Pepsi: Local & Global Strategy. Economic & political weakly, 34 (26), 1701-1708.
2. Basu, P.,Consumer Decision Analysis for purchase of Fruit Drinks, Symbiosis Institute of Business Management, Pune.
3. Consumer Preference Coca Cola versus Pepsi-Cola Global Journals Inc 2012.
4. Funderburg, Anne Cooper (2002), Sundae Best: A History of Soda Fountains. The University of Wisconsin
Popular Press. ISBN 0-87972-853-1.
5. Funderburg, Anne Cooper (1995), Chocolate, Strawberry, and Vanilla: A History of American Ice
Cream. ISBN 0-87972-691-1.
6. Fredrix, Sarah Skidmore & Emily (November 17, 2009), "Costco nixes Coke products over pricing dispute". Associated Press.
7. Leith, Scott (August 16, 2003). Feds pull second firm into probe of Coke. The Atlanta Journal-Constitution.
Retrieved March 28, 2005.
8. "The History of Pepsi-Cola", sodamuseum.bigstep.com paragraph 8.