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BUSINESS

STUDIES
PROJECT

COCA-COLA
AN INTRODUCTION:
Founded in 1892 after the formula was invented by
Pharmacist John S.Pemberton.
Headquartered at Atlanta, Georgia-USA
Currently offers more than 500 brands in over 200
countries
Provides 1.7 billion servings a day
Of this Coca Cola(Coke) accounts for nearly 78%
Sales distributed as follows: 42%(USA), 38%
(Mexico, India, Brazil, Japan and China), 20%(Rest
of the World)
Employees: 1,39,600

Executive Summary:
Doubling the revenues by 2020
Making a positive difference in the communities
Project the company as a responsible corporate
citizen

Sustainable water use & packaging


Climate protection
Lift the corporate brand image
Connect with global middle class by creating new
products and packaging formats for all lifestyles
and occasions.

PRODUCTS OF COCA-COLA:
Coca-Cola
Coca-Cola is a carbonated soft drink sold in
stores, restaurants, and vending machines in
more than 200 countries. It is produced
by The Coca-Cola
Company of Atlanta, Georgia, and is often
referred to simply as Coke.
Thumps-up
Thumps Up is a brand of cola in India. It was
introduced in 1977 to off set the expulsion
of The Coca-Cola Company from India. The
brand was bought out by Coca-Cola who relaunched it in order to compete against Pepsi.
Sprite

Sprite is a transparent, lemon-lime fl avoured,


caff eine-free soft drink, produced by the CocaCola Company. It was introduced in the United
States in 1961. This was Coke's response to
the popularity of 7 UP. It comes in a primarily
silver, green, and blue can or a green
transparent bottle with a primarily green and
blue label.
Fanta
Fanta is a global brand of fruit-fl avoured
carbonated drinks from the Coca-Cola
Company. There are over 100 fl avours
worldwide. The drink debuted in Nazi
Germany in 1941 and originally sold only in
Europe.
Maaza
Maaza is a Coca-Cola fruit drink brand
marketed in India and Bangladesh, the most
popular drink being the mango variety so
much that over the years, the Maaza brand
has become synonymous with Mango.CocaCola has also launched Maaza in orange and
pineapple variants .

Objectives of the Company:

Mission:
To Refresh the World... In body, mind, and
spirit
To Inspire Moments of OptimismThrough
our brands and our actions
To Create Value and Make a Diff erence...
Everywhere we engage.
VALUES :
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

Vision for 2020 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 diff erence

Current Market Situation in India:


The carbonated drinks market is close to
Rs 6,000 crore ($1.36 billion) with growth
at 10-12 per cent
The fruit juices and fruit-based drinks
market is close to Rs 5,000 crore ($1.13
billion), growing at 35-40 per cent
annually.
Within the hot beverages category, India is
the largest producer of tea and accounts
for 28 per cent of the global production at
956 million kilograms annually.

The total turnover of the tea industry is


over Rs 8,000 crore ($ 1.8 billion), growing
at a rate of 1.2 per cent annually.
India is the worlds 5th largest producer of
coff ee, accounting for 4 per cent of the
worlds production.
In India, Coca Cola and Pepsi hold a
market share of 95% of which coca cola
has 60.8% the rest belongs to Pepsi.
Competitors Analysis
Competitors: PepsiCo, Parle Agro Products
Pepsi gives tough fi ght with almost similar
investment, advertisement, Strategies and
Products
Parle resurges with refreshing drinks as
Appy Fizz, Fruity, LMN
PepsiCo also has a snack product line
including Lays, Cheetos and Quaker OATs
PepsiCo provide carbonated drinks, Fruit
Drinks and Packaged Drinking Water

Main Indian Competitors :

Pepsi Co.-Pepsi, Slice, Dew, Mirinda, Tropicana


Juice, Lipton Tea
Nestl-Nestea and other Milk Related
Products.
Dabur-Real Fruit juice

SWOT Analysis of Company:


Strengths:
Strong Brand Name
Corporate Identity
Global Distribution
Heavy promotional activities
70% revenue-outside USA
Innovation Diff erentiated Marketing
Customer satisfaction
Endorsement of celebrities
Reasonably priced
Consumer connecting advertisements
Availability in every local market
Brand Loyalty

Financial Stability

Weaknesses:
Not No 1 In India
Market Share
Under Utilization Of Capacity
Sales In India
Pesticide Controversy
Health care issues.
-Product off ering restricted to beverages
-Inability to launch new product.

Opportunities:
Developing A Global Brand
Coca Colas Bottling System
Suffi cient Capital
Has A Potential
Expansion Into New Market
Possible Growing Demand
- Alliances and Merges

Large domestic market


Export potential

Threats:
legal issues
-competition (Pepsi)
-Large number of substitutes
- Increased prices of raw materials
Pesticide Matter
Change Of Taste

Marketing Strategy:
Marketing Mix:
Product Line
Quality
Brand Name
Logo
Packaging

PRICE:
Modulation in Prices
Psychological Pricing
Penetration Method

PLACE:
Intensive Distribution Strategy
Warehouse & Delivery
Marketing Channels

PROMOTION:
Advertisements:
Print and radio Advertisements

Implementation-Brand
Localization Strategy:
India A(4%):Life Ho To Aisi
This segment sought social bonding as a
need and responded to inspirational
messages, celebrating the benefi ts of their
increasing social and economic freedoms.
India B(96%):Thanda Matlab Coca-Cola

Use of Idiomatic expressions and Local


language
Accessibility Campaign
Distribution Infrastructure: Retail Outlets
Doubled in 2 yrs.(From 80,000 to 160,000)
Doubled the Market Penetration in rural
areas
(13% to 26%)
Campaign of the Year(2003), Advertiser of
the Year(2003)

Implementation through
Advertising :
Brand Ambassadors:
Coca Cola: Imran Khan(Endorsement
Fee:3.35 cr)
Aamir Khan(Endorsement Fee:10 cr)
Virendar Sehwag
Alia bhatt
Sidharth Malhotra
Thumps up-Akshay Kumar(Endorsement
Fee: 5 cr)

Salman Khan
Fanta-Genelia Dsouza (Fee: 1.13 cr)
Sprite-Shahrukh Khan

Sponsorships:
First Commercial Sponsor of Olympic
Games in 1928
Fifa World Cup(Since 1978)
Major League Baseball, NBA, NHL.
1996 Cricket World Cup
IPL: Delhi Daredevils
English Football League(Coca Cola
Championship, League 1, 2)

Campaigns & Collaborations:


Dominos
Coke Studio with MTV
Diwali Campaign: Come Home on
Deepawali

Issues and Initiatives in India:


Groundwater Depletion

-The Issue: Several droughts in a number of


villages in Kerala and Uttar Pradesh where the
plants operated were linked as a possible
cause due to the large usage of water for
production.
-The Initiatives:
Reduce
Recycle
Replenish
-The Results:
1.Water usage ratio reduced by more than
25% from 2004-2009
2.Waste water treated to a level to support
aquatic life
3.Rainwater harvesting potential equal to 93%
of ground water used.
The Pesticide Controversy:
-The Issue: in 2006, CSE established that Coke
had 25 times the pesticide residue than found
in 2003 which posed health risks, which also
resulted in a 11% drop in sales.