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Today, the company is the world's leading manufacturer in the beverage industry, operating globally in more than 200 countries with its head office located in Atlanta, USA. It produces more than 300 beverage brands and over 1.06 billion drinks are consumed per day. In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies necessitated its departure. Coca-Cola returned to India in 1990 and over the past nineteen years has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. CocaCola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in Sharjah in the late nineties.
THE MISSION STATEMENT OF THE COCO COLA COMPANY Our mission statement is to maximize shareowner value over time. In order to achieve this mission, we must create value for all the constraints we serve, including our consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: 1. Consumer demand drives everything we do. 2. Brand Coca Cola is the core of our business 3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink through out the day. 4. We will be the best marketers in the world. 5. We will think and act locally. 6. We will lead as a model corporate citizen. The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-term cash flows, and create economic value added by improving economic profit.
The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each customer’s business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market. There are nearly 6 million people in the world who are potential consumers of our company’s product. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time.
COCA COLA INTERNATIONAL HISTORY: Coca-Cola Enterprises, established in 1986, is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton , began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead , secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986,
The Coca-Cola Company merged some of its companyowned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form CocaCola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a split-adjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986. In December 1991, a merger between Coca-Cola
Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion.
PRODUCT LINE: The Coca-Cola Company has a no of brands like Thums up, Sprite, etc. But if we talk about Coca Cola as a product it has sub products like Diet Coke, Caffeine Free Coke, Cherry Coke Coca-Cola Zero, Vanilla Coke and special editions with lemon and with lime, and even with coffee. Coca Cola Company deals mainly in soft drink industry and these are some of its major brand. It also deals in soda and mineral water through the brand name Kinley.
Multi branding is the is the branding strategy used by Coca Cola company for its different products. Know the most recognized word on the planet after “OK”!
Among the soft drinks Fanta and Sprite become successful along with the major brand Coca Cola and Diet Coke. In key markets, the company has created new packaging sizes to satisfy consumer demands.
STRATEGIC PLANNING: In the year 2002, the company had a great success, as the strategy worked which resulted in making Coca Cola Company the world’s leading company. In 2001, company accomplished the crust of it’s strategy as • Worldwide volume increased by 4 percent with strong international growth of 5 percent and clear signs that our North American business is growing solidly and predictable. • Earnings per share grew by 82 percent, as we delivered on our commitment to create volume growth while aggressively
Return on common equity grew from 23 percent in 2000 to 38 percent this year.
• Return on capital increased from 16 percent in 2000 to 27 percent in 2001. • The company has generated free cash flow of $3.1 billion, up from $2.8 billion in 2000, a clear indication of its underlying financial strength.
The strategy for the future of the company is very straightforward. The marketing strategy for the year 2002 is as follows, • Accelerate carbonated soft-drink growth, led by CocaCola. • 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
. MAJOR COMPETITOR (PEPSI INTERNATIONAL): HISTORY PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods North America, manufacturer and marketer of ready-to-eat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.would entertain the listener with the latest musical selections rendered by violin or piano or both. The new name, “Pepsi Cola”, is derived from the two of the principle ingredients, Pepsin and Kola Nuts. It was first used on the August 28. At that time, Bradham’s advertising praises his drink as “Exhilarating, invigorating, aids digestion”.
1990-2002 The advertisement of the Pepsi changes to, “You got the right one baby, Uh-Huh!”.With the extensive usage of the stars in the adds, the popularity of Pepsi increase. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. Outside the United States, Pepsi-Cola Company's soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in more than 190 countries and territories. In Asia, they selected Lahore to make their regional office. This was done in 1970. This regional office is monitoring all the operations carried out in South West Asia. As in India, they only entered beverage industry. They have eleven bottlers covering whole India.
COCA COLA INDIA The Coca-Cola Company began operating in India in 1949. All the brands of Coca Cola are available in India. The Coca-Cola System in India operates through eight bottlers, four of which are majority-owned by Hindustan Coca-Cola Beverages Private Limited (HCCBPL). The HCCBPL plants are present in almost all the states of India, The CocaCola System in India serves 70,000 customers/retail outlets. The Coca-Cola System in India employs 1,800 people. During the last two years, The Coca-Cola System in India has invested over $130 million (U.S.)
PROMISE OF COKE The basic proposition of our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business. TARGET MARKET Coke’s commercials basically based on young generations, so, the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market. MAJOR SEGMENTS Major segments are basically those people who take this drink daily and those areas where the demand is higher then the other areas. There are so many people who take this drink daily and those people who take weekly and those who take less often are always there as well. So, their basic segments are those people who take this drink regularly.
FACTORS AFFECTING SALES There are so many factors, which affect the sale of coke. Here we are discussing two major factors which effects coke. • Per capita income • Weather Per Capita Income First we will discuss about “Per capita income”. This is major factor that affects the sale of this soft drink. Because which every passing year budgets are becoming very strict and tight in order to purchase things. So the disposable incomes of the people are coming down. They spend heavily on rents, utilities, and education and basic necessities and after that when they get extra money they think about this soft drink .So the decreasing per capita income effects badly in selling and production of this soft drink. And to get through with this difficulty there is need to increase the level of per capita income of India because it is much lesser than the rest of the countries.
Weather Weather is the third major factor in effecting the Coke’s selling. This is underdeveloped market so the coke’s consumption in summers is 60% and in winters is 40%.
THREATS FROM COMPETITORS Threats are well planned. Price is the major threat. When price goes certain beyond the exact price whether come down or go higher its effects the consumption of soft drink. Because when the prices go higher people go for the substitute of “coke” i.e. Pepsi. And when price goes down they think that there is must be some thing wrong in it. In short it all depends on customer’s perception.
BGG MATRIX OF COCA-COLA COMPANY Currently, Thums Up and Maaza are the STARS of Coca Cola Company. The market shares of Fanta and Sprite are quite low even though they are growing at a good rate. They are QUESTION MARKS for the company. Limca and Kinley are the CASH COWS for the company and do not need promotions to bulk up their sales. Coca Cola is a DOG for the company and need to be removed out of the market or a new strategy has to be adopted for the same.
TARGETS THAT THE COMPANY WOULD LIKE TO ATTAIN Every organization runs on the bases of profit maximization so Coke is also looking for a high profit margin. There are three major ways of making money • Over night profit • Windfall profit Over Night Profits They could be over night profit that is for the number 1 brand for the year. This could be got my increasing sales volume Windfall Profit Can be windfall profit. They are the extras profit. When the consumption the consumption is on boom. So, there is different kind of profits. Some profits stays for some time like “over night profits” and some just come and go like “wind fall profits”. And they can also get profit through different approaches
EXPANDING TARGET MARKET In last 2 years Coke has come back in aggressive manner. • Attractive brand name • Brand differentiating 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. Coca Cola’s Brand Coca cola is “US” brand. Because they believe in the togetherness, being people together and friends are being together. Coca Cola strongly believes that the Indian temperament is “US” not “ME”
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 which 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. It's a special thing to have billions of friends around the world, and we never forget it.
MARKET POSITIONING Product Range The total range of Coca Cola Company in India includes: • Coke. • Sprite. • Fanta. • Diet Coke • Maaza • Kinley Soda • Limca • Minute Maid Pulpy Orange
And company offers their products in different bottle sizes these include: • SSRB • LRB (standers size returnable bottle) (litter returnable bottle)
• NRB • PET 1.5 • CANS
(no return bottle) or disposable bottle (1.5 litter plastic bottle) (tin pack 330 ml)
PRODUCT LIFE CYCLE: To be able to market its product properly, a firm must be aware of the product life cycle of its product. The standard product life cycle tends to have five phases: Development, Introduction, Growth, Maturity and Decline. Coca-Cola is currently in the maturity stage, which is evidenced primarily by the fact that they have a large, loyal group of stable customers. Furthermore, cost management, product differentiation and marketing have become more important as growth slows and market share becomes the key determinant of profitability. In foreign markets the product life cycle is in more of a growth trend Coke's advantage in this area is mainly due to its establishment strong branding and it is now able to use this area of stable profitability to subsidize the domestic "Cola Wars". Whilst Coca-Cola manages to increase global sales through entry into additional markets, many of its core products have remained the same over significant periods; it has just been their branding that has changed.
MARKETING MIX- THE 4 P’S:
1. PRODUCT: Quality:Water Since water is a key component of the beverages, care is taken that the quality of water is very good. And, since public water quality varies around the world, each plant further treats the water it uses. This means that before water is added to any of the beverages; it's rigorously filtered and cleansed. Then they continuously sample the water to ensure it meets the standard. Apart from that the company ensures quality by making significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems and marketing channels. Coca cola has been rated three stars for quality and packaging.
After the pesticide matter coca cola was given a certificate that it is safe to be consumed.
Certificate is as shown below.
“Quality Is Our Highest Business Objective” This is the statement given by the company.
Brand Name:Proved in a survey In 'blind' taste tests, people prefer the taste of Pepsi over the taste of Coke. However, if the test is not 'blind' and the tasters know which beverage is which, they prefer the taste of Coke over Pepsi! That is the emotional power of a brand. The Coca-Cola brand has the power to actually change an individual's taste! Coca-cola is the no.1 brand in the world.
Coca-Cola is recognized by 94% of the world’s population. Guinness World Record ranked coca cola as the most popular soft drink. Coca-Cola had signed on various celebrities including movie stars such as Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly, southern celebrities like Vijay in the past. Today, its brand ambassadors are Aamir Khan and Hrithik Roshan. Logo:The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson, in 1885. It was Robinson who came up with the name, and he also chose the logo’s distinctive cursive script. Coca cola has two registered trade marks as shown below.
Packaging:As we have visited Coca Cola Company personally we have seen that for pet bottles it is produced on the spot when production and packaging work is also
done and the bottles are not reused. The glass bottles production unit is not at the place of production but it is brought till there and even the used bottles are used after cleaning it through many processes. The cans are imported from foreign countries as it is not produced here.
The packaging of have been always very attractive and different from others, as we can also see in the bottles below. Even the 600 ml bottle has a different kind of packaging. The first shape that was registered was of the coca cola bottle. Once the filled beverages have passed final inspection, they are ready to be packaged for delivery. Generally, packing can refer to everything from the unique "BOTTLE" and "CAN" designs, to label designs, to cardboard boxes and containers, to plastic rings. Because the needs and tastes of our consumers are so diverse, packaging varies depending on where the beverages are being sent.
2. PRICE Trade Promotion: Coca Cola Company gives incentives to middle men or retailers in way that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And that’s why coca cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more. “Seen as sold” They do agreements with a shop keepers and stores to exclusive sale in those stores. These stores are called as KEY accounts in their local language. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives. Different Price in Different Seasons Some times Coca Cola Company changes their product prices according to the season. Summer is supposed to be a good season for beverage industry in India. So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle.
3. PLACE Coca-Cola is distributed to more than 200 countries, with more than 450 brands consisting of 2800 beverage products. Each of these products is packaged and formulated to meet the consumer needs and preferences of its region or country. Coca-cola produces the product, but relies on its Distribution channel to get the product to the consumer, by working with bottling companies and retailers. Coca-cola does not have control over the entire distribution channel, but has strong governing principles for all of its suppliers to ensure they adhere to Coca-Colas guidelines
4. PROMOTION SALES PROMOTION ACTIVITIES Coca-Cola Cricket Cricket the most sought after; watched & played game in India. Coca-Cola signed a sponsorship agreement with eight of India’s National cricket players. Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it consumers & masses invested in the opportunity and launched a massive campaign on mass media showing all these cricket stars endorsing & complimenting CocaCola brand. The Coca-Cola Company developed three TV commercials & four testimonial ads with the player & ran them on the national net work during various cricket matches. These bold steps taken by the Coca-Cola marketing unit acclaimed them many acknowledgements across the board. This campaign helped Coca-Cola to establish its association with the game & the player.
Coca-Cola Food Mela With a splash of food, fun & prizes to be won, the CocaCola food mela treated the people of Delhi, to a festive food festival comprising of 50 restaurants, spread out all over the
bustling city’s map. The promotion saw the avid families & friends enjoying the delicacies at the restaurants; all resiliently upholding the Coca-Cola identity. Coca-Cola Party in a Park In June 2000, Coca-Cola created an experiential musical evening in Mumbai, where various musicians performed. This program was recorded and one-hour program shown in the national TV for free.10 million households saw CocaCola ‘Party in a Park’ while 10 thousand people attended the event. Coca-Cola Shopping Festival Coca-Cola hosted “The Coca-Cola Shopping Festival”; Delhi’s first shopping festival, a resounding success with tempting discounts, live music, great prizes & fire works. Liberty marketing was a hive of activities during the weeklong shopping extravaganza. The in augural event proved so popular that it is now set to become an annual fixture. Coca-Cola Pet Promotion In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in India. Targeting house wives & family home, Coca-Cola’s 1.5 liter Pet bottle, took the limelight & gained momentum with a campaign promoting the unique packaging and its numerous consumer benefits .A treat for
the family, Coca-Cola’s PET was offered through a “priceoff” promotion that said……….Go out & get some Coca-Cola Wonder of the World Promotion In July 2000, Coca-Cola set the stage of the grand UTC promotion. Coca-Cola went ahead with the idea of giving consumer chances to win fabulous, magical “dream vacation” to numerous “wonder destination” throughout the world on every purchase of a 250 ml RGB bottle of CocaCola, Sprite, & Fanta. The promotion gave consumers a chance to win free drink, a trip to PARIS, HOLLYWOOD, NEWYORK, SINGAPORE & CAIRO along with airfare & four nights free stay in these dream lands. The promotion saw avid consumer collecting Coca-Cola ‘Crown caps’ & sparked a keen response from the public , rendering an outstanding testimonial campaign in the second phase, highlighting the winners over whelmed in the magical delight of their favorite beverage Coca-Cola. Coca-Cola & Nokia In August 2001, the new under-the-crown promotion “Nikla Kya?”(What have u won) was launched in collaboration with Nokia.The promotion gave consumer a chance to win thousand’s of Coca-Cola branded Nokia 3310 cellular phones on every purchase of 750ml RGB bottle of CocaCola ,Sprite, & Fanta.The other highlight of promotion was
the “Caught Red Handed” campaign. Branded Coca-Cola with ‘caught red handed’ team in them went to Delhi, Mumbai Kolkata and Bangalore for three days, with target that anyone being caught drinking Coca-Cola will be awarded a nokia 3310 mobile phone & if someone is caught talking on a nokia mobile will win free supply of CocaCola. Caught red handed become a huge success among the masses as it was one to one interaction between the CocaCola brand & the consumers. This activity helped billed confidence and brand loyalty among core consumers. Coca-Cola & Mc Donald’s Coca-Cola & key account of MC Donald’s launched the “we go together” joint promotion to reinstate amongst consumers a real sense of the affinity that, both shares globally. The promotion kicked off with pos material (Danglers, Bunting etc) displayed at all MC Donald’s restaurants along with a special offer for coke & fries. Diet Coke After the acquisition of the individual local franchise bottling facilities in 1996, the company successfully launched its first new product, diet coke, for the first time in almost 3 years.
Advertisement Advertising The Coca-Cola Company uses advertising as its main source of increasing consumer awareness. It mainly uses television for advertisement. There are many television advertisements on Coca-Cola products. This source allows the company's products to reach a large audience. The latest television advertisement for Coca-Cola soft drinks was Aamir khans ` hum same same' advertisement. One of the older one are `thanda matlab coca cola' & ‘Manu bhabhi’. The company also uses the radio as another source of advertisement. This is a cheaper source of approach compared to the television. But in television the insertion time per capita is very low compared to radio. The business had substantial advertising and promotions of the company's brands. The Coca-Cola Company when advertising has a primary target market of those who are of age 13-24, and a secondary market of age 10-39. These are some of the TV commercials of coca cola.
Radio advertisement Other from this it also advertises on radio for e.g. “thanda matlab coca cola”, “life ho toh aisi” and many other. For radio advertisement they mainly use the proverbs only. Print advertisement If we talk about print ads there are hoardings of coke. Some of the hoardings are as shown below:-
These are some of the hoardings of vanilla coke a product of coke.
SWOT (Strength, Weakness, Opportunities, Threats) Analysis STRENGHT: 1. STRONG BRAND NAME The world's most valuable brand. Its brand value at $70.45. It is the most recognizable word across the world after Ok is Coke. Extremely recognizable branding is one of Coca-Cola’s
greatest strengths. Coca-Cola’s brand name is known well throughout by 90% of the world today. 2. CORPOARATE IDENTITY it has a very strong corporate identity as it is very recognized company in all the parts of the world and it is in existence since 1880’s. 3. GLOBAL DISTRIBUTION coca cola is available in each and every part of the world as it is operating globally in more than 200 countries with its head office located in Atlanta, USA and daily more than 1.06 billion dollar are consumed around the world. 4. ADVERTISEMENT of coke is very attractive and they use big stars like Aamir Khan, Aishwarya Rai & Hrithik Roshan in it. 5. INNOVATION it always launches innovative products like diet coke, vanilla coke and many other. 6. LOCAL APPROACH it conducts business on a global scale while at the same time maintain a local approach which is purely visible from its advertisement. 7. STRONG R&D coke has a very strong R&D. 8. BACKWARD INTEGRATION is one of its biggest strength as it has wholly company owned bottling
operations and that’s why it also has a chance to work on is price. Also according to Bettman Coca-Cola’s bottling system is one of their greatest strengths. 9. “THANDA MATLAB COCA COLA” campaign worked really well in India. 10. BRAND LOYALTY Coca cola enjoys the brand loyalty from the customers 11. FINANCIAL STABILTY is their in company as it is a very old and prestigious brand. WEAKNESS:
NOT NO. 1 IN INDIA... In every part of the world coke is at the first position in terms of sales leaving its competitors far behind. But in India it is at the third position behind its biggest competitor Pepsi at first place and coke owned company ThumsUp at the second place.
2. MARKET SHARE its market share in India as a product is very less as compared to others. 3. UNDER UTILIZATION OF CAPACITY is one of its weakness
4. SALES IN INDIA its sale in India is 6 bottles per capita per year which is very low compared to other western countries like Mexico which has a total sale of 533 bottles per person per annum. 5. PESTICIDE SCANDAL in India decreased its sale and created a doubt in minds of people about pesticide.
OPPORTUNITIES: 1. POSSIBLE GROWING DEMAND in a country like India the per capita consumption of coca cola per year is the lowest in the world that is only 6 per person. 2. DEVLOPING A GLOBAL BRAND 3. COCA COLA’S BOTTLING SYSTEM also allows the company to take advantage. It can work on its price. Most of the bottling companies are under the control of coke which gives that much of flexibility for its modulations in the pricing strategy which cannot be exercised by the rival cola giant pepsico because it does not own its own bottling companies hence it does not
enjoy that much of flexibility in modulating the pricing strategy of PepsiCo. 4. SUFFICIENT CAPITAL gives it significant growth opportunities. 5. HAS A POTENTIAL to innovate and differentiate the company's products to sustain a competitive advantage 6. EXPANSION INTO NEW MARKET other than soft drink market. As coke is enjoying so good brand name, then if they enter in any other industry with same brand name it can also succeed in that industry. 7. MERGE with other global business is another option in front of them to expand their business. THREATS: 1. COMPETITION PEPSI its competition from Pepsi is a big threat to the company as the market share of Pepsi is more than coke in India 2. Coca-Cola can be SUBSTITUTED by other soft drink products made by its competitors.
3. The soft drink industry is very strong, but consumers are NOT NECESSARILY MARRIED to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate. 4. PESTICIDE MATTER after the pesticide matter the sales of coke felled tremendously and it happened twice and company has to get a permanent solution to it. 5. Other threat which the companies possess is of CHANGE OF TASTE of their consumers. CONCLUSION OF SWOT ANALYSIS: After thorough research, we come to the conclusion that the marketing strategy of Coca Cola is working for them and the product is gaining popularity among youth day by day. RECOMMENDATIONS:
After completing our project we have concluded some recommendation for the coca cola company, which are following. • Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers.
According to the survey, conducted by the international firm India people like little bit sweeter cola drink. So for this coca cola company should produce their product according to the local demand.
• Marketing team should try to increase the availability of Coke in rural areas. • They should also focus the old people. • Now young generation has a trend to drink a coke 2 regular bottles at same time, so providing more satisfaction to them company should introduce ½ liter disposable bottle.
PEST ANALYSIS OF COCA-COLA: There are four variables, which we will discuss in our report, they are: POLITICAL VARIABLES Political variables Effects of government regulations & deregulations Effect of environmenta l protection laws if any Import and export regulations Effect of political conditions in certain countries of Coke Strongly Some No Some Strongly Effected what Effect what Effected Effected + − Effected ++ −− + − NE
Conclusion of Political Analysis: As far as the above table is concerned it could be seen that there are very little chances of “political variables” to effect the coke’s production and selling behavior. In the “political variables” most of the things are related to Governmental activities. So, they don’t leave any good or bad impact in the Industry of coke. And there are some exceptional things like: “environmental protection laws” they some what effect the industry of Coke. From last two years Government is going to be really very much conscious about the environment. But after making the adjustments in plants and applying the proper way of wastage the chances of being affected by the “protection laws” are going to be diminished. So it impact good for the Coke’s reputation. And the second thing in political variables which effects Coke is “elections” Because in the days of elections, a country’s production in any field is declined. So it affects slightly the revolution of Coke. So “political conditions” are over all leave neutral effects on coke’s industry.
ECONOMICAL VARIABLES Economical Variables Do soaring interest rates make business task any harder Any effect due to inflation Anything done to reduce unemployment Any effect of 11th September 2001, incident at Coke in India Strongly Some No Some Strongly Effected what Effect what Effected Effected + − Effected ++ −− + − YES
YES YES NE
Conclusion of Economical Analysis It could be seen that “economical variables” highly affects the Coke’s resolution. Economic factors are those actors who effect the production of any industry. So, Coke is not the out of question. If the economic conditions of the country is not that strong and Coke increases its Price in this situation. Then it would impact highly negative. And inflation is also not a good position for any country’s production point of view. It also impacts highly negative in the Coke’s production. And as a country concerned like “India” where the unemployment rate is very much high. The Coca-Cola system in India employs 1,800 people. During the last 2 years, the Coca-Cola system in India has involved over $130 million (U.S). When we draw the conclusion of “economic variables”. Then we come to know that if economic variables are in the favorable position of country then they impact good other wise the impact highly bad.
SOCIAL VARIABLES Social variables Effects of advertisement of Coke on Public popularity How will do Coke’s contribution affect charity organizations of India Has rising consciousnes s of natural resources in people effected your “save environment activities. Strongly Some No Some Strongly Effected what Effect what Effected Effected + − Effected ++ −− + − YES
Conclusion of social analysis: EDUCATION The Coca-Cola Company has always believed that education is a powerful force in improving the quality of life and creating opportunity for people and their families around the world. The Coca-Cola Company is committed to helping people make their dreams come true. All over the world, we are involved in innovative programs that give hard-working, Knowledge-hungry students books, supplies, places to study and scholarships. From youth in Brazil to first generation scholars, educational programs in local communities are our priority. ENVIRONMENT A large part or our relationship with the world around us is our relationship with the physical world. While we have always sought to be sensitive to the environment, we must use our significant resources and capabilities to provide active leadership on environmental issues, particularly those relevant to our business. We want the world we share to be clean and beautiful. We are always innovating to bring you different delicious beverages. This same spirit of innovation comes alive in our environment programs. We’re committed to preserving our environment, from use of more than $ 2
billion (U.S) a year in recycling content and suppliers, and environment Management initiatives, down to very local neighborhood collection and beautification efforts. Here’s a sample of what we’re doing in different communities around the world regarding the conservation of water and natural resources, climate changes, waste environment education. The Coca-Cola system in India operates through eight bottlers. Four of which are majority-owned by Hindustan Coca-Cola Beverages Private Limited (HCCBPL).
TECHNOLOGICAL VARIABLES Technological Strongly Some No Some Strongly variables Effected what Effect what Effected Effected + − Effected ++ −− + − Have business YES innovations effectively promoted your business Has the YES government’s regulations ever hindered in importing technical equipment Does Coke YES help in promoting paperless environment
Conclusion of Technological Analysis
Of course business innovation leaves highly good impacts in the business of Coke. As coke use more advance technology in its production process. It will resulted in increment of their production through out the country. As far as the “governmental hindrances” are concerned the impacts highly bad on coke’s production. Ever year when budget in announced government taxes rates always shoot up. This approach of government decreases the profit margin of Coke. As the coke helping in promoting “paperless environment” .it impacts good, because computers are the basic need of any person now a days. And though it’s a big industry so it is promoting the trend of paperless environment. And it is giving the way of other industries to come to new technologies and into a new world of business. Through computers coke can increase the efficiency of its business and can have up –to-date data about their productions.
OVER ALL RESULTS OF PEST ANANYSIS After our studies and analysis of HCCBPL (Hindustan Coca-Cola Beverages Private Limited), we came up with the very interesting report of facts and figures. Coca-Cola is no doubt one of the most popular beverage companies. They spend billion of dollars on their advertisement, promotions and recreational campaign. Coca-Cola is a close competitor of Pepsi and it certainly gives its rival a tough time. Coca-Cola is a 27% shareholder in the India market and they don’t want to stop here!! Its target market is to achieve a much higher %age. Coca-Cola has about 2000 employees at Indian plants. Wada plant of Coca-Cola is one of the biggest plants in Asia, Coca-Cola has always had a close consumer and supplier relationship with its customers. Its entertaining and colorful advertisements have always and will always rock the media. Indian rock stars, sportsmen and actors have played a very vital role in making Coca-Cola such a popular beverage.
CONCLUSION: Coca-Cola no doubt come the heart beat of India. Coca-Cola is one of the leaders in sponsoring the most important, thrilling events. E.g. Cricket matches concerts and many other social occasions. So… “ Jo chaho ho jaye coca-cola enjoy ”
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