A PROJECT REPORT

ON
“MARKETING STRATEGY OF COCACOLA COMPANY”

Submitted by:
ABHIJIT MOHANTY
Regd. No & Roll No-17030190080007
College Roll- BC- 17 - 027

Under the guidance of : Dr. Ajit Kumar Kar

RAJDHANI COLLEGE , BHUBANESWAR,ODISHA(INDIA)

SIGNATURE OF EXTERNAL EXAMINER

SIGNATURE OF THE INTERNAL EXAMINER
 DECLARATION

I do hereby declare that the report for comprehensive project entitled “Marketing Strategy of
Cocacola Company” submitted by me as a partial fulfillment of the requirements for the degree
of bachelor in commerce course in the curriculum in Rajdhani College. It is the original piece of
work done by me under the guidance of Dr. Ajit Kumar Kar as my faculty guide and has not
been submitted for the awards of any other degree elsewhere in full or in part.

PLACE : BHUBANESWAR CANDIDATE SIGNATURE

DATE : ROLL NO-

 CERTIFICATE

This is to certify that the project entitled “Marketing Strategy of Cocacola Company” is a record
of bonafide work carried out by ABHIJIT MOHANTY under my supervision and guidance. It
embodies of his original contribution. The project has reached the standard of fulfilling the
requirements of regulation relating to the bachelor degree of commerce. No part of this project
has been submitted to any institution for the award of any degree.

I wish him all the best and success in the future endeavors.

SIGNATURE OF THE CANDIDATE DR. AJIT KUMR KAR

FACULTY OF COMMERCE

RAJDHANI COLLEGE
 ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion would be incomplete without
mentioning people who made it possible, whose encouragement and constant guidance
crowned my effort with success.

I express my gratitude to my guide Dr. Ajit Kumar Kar, Department Of Commerce, Rajdhani
College, Bhubaneswar for his suggestion, constant inspiration and prompt guidance to carry out
and complete this study.

Last but not the least I specially thank all those who have helped me directly or indirectly to
complete this project. I express my profound thanks to my teachers as well as my friends for
their valuable suggestions and constant encouragement.

DATE: ABHIJIT MOHANTY

PLACE: Bhubaneswar ROLL NO-

Contents:
i. Brief Introduction of Marketing Plan
i. Objectives of Marketing Plan
ii. Mission statement of Coco- cola
iii. Objectives of marketing plan
iv. Execution summary
v. Market share
vi. Objectives of the company
vii. Current market situation in India
viii. SWOT Analysis
ix. Marketing strategy – Marketing mix
x. Implementation
xi. Budgets
xii. Issues and Initiatives
xiii. Suggestions
Introduction of the Company
•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)

•Financial Details :
Revenue US$ 35.119 billion
Operating income US$ 8.449 billion
Net income US$ 11.809 billion
Total assets US$ 72.921 billion
Total equity US$ 31.317 billion
•Employees: 1,39,600
Fun Fact 1: 3.1% of all beverages consumers around the
world are Coca-cola products .
Of the Of the 55 billion servings of all kinds of beverages
drunk each day (other than water), 1.7 billion are Coca-
Cola
55 billion servings of all kinds of beverages drunk each
day (other than water), 1.7 billion are Coca-Cola .

The Mission Statement of the

Coca 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:
i. Consumer demand drives everything we do.
ii. Brand Coca Cola is the core of our business
iii. We will serve consumers a broad selection of the
nonalcoholic ready-to–drink beverages they want to
drink through out the day.
iv. We will be the best marketers in the world.
v. We will think and act locally.
 vi. 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.
Fun Fact 2:Coke makes so many different
beverages that if you drank one per day, it would
take you over 9 years to try them all.
Coca-Cola has a product portfolio of more than 3,500
beverages (and 500 brands), spanning from sodas to
energy drinks to soya-based drinks.
Introduction of Marketing Plan
•A part of business plan

•Most marketing plans cover one year

•General to specific : Vision to mission & then

down to the individual action plans

•The most important output of marketing

process.
Objectives of Marketing Plan
•To set realistic & unambiguous goals.

•To develop an action plan for achieving these

goals.

•To align the marketing activities with

corporate mission.

•To respond to rapidly changing market

conditions.

•To quantify the outcome of each activity.

Executive Summary

•Doubling the revenues by 2020.

•Making a positive difference in the communities.

•Project the company as a responsible corporate citizen

a) Sustainable water use & packaging
b) Climate protection
•Lift the corporate brand image.

•Connect with global middle class by creating new

products and packaging formats for all lifestyles and
occasions.
 Fun Fact 3:
Cocacola’s $35.1 billion in revenue makes it
the 84th largest economy in the world, just
ahead of Costa Rica.
MARKET SHARE : Being the biggest company in
the soft drink industry, Coca Cola enjoys the largest
market share. This company controls about 59% of the
world market.
GLOBAL MARKET SHARE:
The following table can show the worldwide operating

segment .
Unit case growth Non- All commercial
alcoholic Beverages
drink
10 year 5-year compound 2001 annual 2002 2002
compound annual annual growth growth
growth
Compan Industry Compan Industry Compan Industry Company Compan Compan
y y y share y share y per
capita
Income
6% 5% 5% 5% 4% 4% 18% 9% 70
This is how that the market of the company is
geographically vast and it is controlling it with great
success. In 2002, the company grew their carbonated
softdrink business by nearly 250 million unit cases and
generated record volumes. Because carbonated soft
drinks are the largest growth segment within the
nonalcoholic ready-to-drink beverage category measured
by volume, that is why they are focusing more on this
and they are continually increasing the pace because
they know that accelerating this pace is crucial to their
future success. Thus they are increasing their market day
by day. The operation income earned by Coca Cola
Company can be illustrated by the following pie chart.

This strategy has worked a lot and it has helped them to

become the World’s leading Soft Drink Company. The
global unit sale of the Coca Cola Company is increasing
from the last ten years. The data of the global unit sale of
the Coca Cola Company can be represented by following
chart.
12

10

0
1971 1981 1991 2002
So there is positive growth in the market of the Coca Cola
Company. There is a worldwide volume increase by 4%
with strong international growth of 5%. This is only due to
the innovative marketing programmers, which has
deepened the relationship of the customers and Coca
Cola. The financial health and success of their bottling
partners is a critical component of The Coca-Cola
Company's ability to build and deliver leading brands.

Objectives of the Company

Mission:
•To Refresh the World. In body, mind, and spirit
•To Inspire Moments of Optimism. our brands and our
actions Through
•To Create Value and Make a Difference. Everywhere we
engage.
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
difference
Fun Fact 4:The Coca-Cola brand is worth an
estimated $74 billion: more than Budweiser,
Pepsi, Starbucks and Red Bull combined.
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 world’s 5th largest producer of
coffee, accounting for 4 per cent of the world’s
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.
Main Indian Competitors:
Pepsi Co.-Pepsi, Slice, Dew, Mirinda,
Tropicana Juice, Lipton Tea
Nestlé-Nestea and other Milk Related
Products. Dabur-Real Fruit juice.

Aerated drinks offered by Coca Cola-

 Coca Cola
 Diet Coke
 Sprite
 Thums up
 Maaza

Products to offer in-

 Soda- Kinley Soda
  Juices- Minute Made
 Water-Kinley Water
 Tonic Water – Schewpps
 Energy Drink- Burn
 Canned Coffee- Georgia

Fun Fact 5:If every drop of Coke ever

produced were put in 8-ounce bottles and laid
end-to-end, they would reach the moon and
back over 2,000 times.
Fun Fact 6:If you stacked up Coke's 2.8
million vending machines, they would take up
150.2 million cubic feet of space -- the size of 4
Empire .
 SWOT Analysis of Company
Strengths:
•Strong Brand Name
•Corporate Identity
•Global Distribution
•Advertisement
•Innovation
•Local Approach
•Strong R&D
•Backward Integration
•“Thanda Matlab Coca Cola”
•Brand Loyalty
Weaknesses:

• Not No 1 In India
• Market Share
• Under Utilization Of Capacity
• Sales In India
• Pesticide Controversy
Opportunities:
• Developing A Global Brand
• Coca Cola’s Bottling System
• Sufficient Capital
• Has A Potential
• Expansion Into New Market
• Possible Growing Demand
• Merge
• Threats:
• Competition Pepsi
• Substituted
 • Not Necessarily Married
• Pesticide Matter
• Change Of Taste
Marketing Strategy

Marketing Mix:
Product-
 Product line
 Quality
 Logo
•Packaging
• The product range of
Coca-Cola includes:
– Coca-Cola,
– Coca-Cola classic,
– caffeine free Coca-Cola,
– diet Coke
 – caffeine free diet Coke,
– diet Coke with lemon
– Vanilla Coke,
– diet Vanilla Coke, – Cherry
Coke,
– diet Cherry Coke, Fanta
brand soft drinks,
– Sprite,
– diet Sprite
– Sprite Remix

Product Life cycle of Coke:

COCA-COLA Product lifecycle has four phases.
The markets where Coke is a dominant player are United States
of America, Europe and Asia, Africa. There is a vast difference in
terms of above given phases for example, in U.S.A & Europe it
has reached maturity stage where it can’t expand its market
more but if we consider Asia, it is still in the growth phase.

Coca-Cola is currently going through the maturity stage

in Western countires. This maturity stage lasts longer than
all other stages. Management has to pay special attention to
products during this stage of the product life-cycle. During
the maturity stage, products usually go through a slowdown
in sales growth. According to CocaCola's 2001 annual report,
sales have increased by 1.02% compared to last year. This
percentage has no comparison to the high level of growth
Coca-Cola enjoyed during its growth stage. To add a little
variation Coca-Cola took the Coca-Cola Classic and added
variations to it, including Cherry Coke, Vanilla Coke and Diet
Coke. Also Coca-Cola went from 6-oz. glass bottles to 8-oz.
cans to plastic liter bottles, all helping increase consumption.

Fun Fact 7:The red and white Coca-Cola

logo is recognized by 94% of the world's
population.
  Price
 Modulation in Pricing
 Psychological Pricing
 Penetration Method
Like any company who has successfully endured a century of
existence, Coca- Cola has had to remain tremendously fluent
with their pricing strategy. They have had the privilege of a
worthy competitor constantly driving them to be smarter,
faster, and better. A quote from Pepsi Co's CEO "The more
successful they are, the sharper we have to be. If the Coca-Cola
Company didn't exist, we'd pray for someone to invent them."
states it simply. The relationship between Coca-Cola & Pepsi is
a healthy one that each corporation has learned to appreciate.
Throughout the years Coca-Cola has made many pricing
decisions but one might say that their ultimate goal has always
been to maximize shareholder value. As cola consumption has
decreased in the US colas have come to realize the untapped
international market. In 2003 both Coke and Pepsi had a solid
presence in India and had each introduced a 300mL bottle. In
order to grab market share Pepsi began to drop prices (even
with summer approaching, which was contrary to policy in
America). Shortly thereafter, CocaCola decided to drop their
prices slightly, but focused on the reduced price point of their
200mL container. Coca- Cola planned to use the lower price
point to penetrate new cities that were especially price
sensitive. The carbonated soft drink market in India is nearly
37% of the total beverage market there.
This low price strategy was not unfamiliar to Coca-Cola. Both
Coke & Pepsi utilized a low price strategy in the early 1990s.
After annihilating the low price store brands, Coke chose to
reposition itself as a "Premium" brand and then raise prices.
Coca-Cola products would appear, on the shelf, to have the
most expensive range of soft drinks common to supermarkets,
at almost double the cost of no name brands. This can be for
several reasons apart from just to cover the extra costs of
promotions, for which no name brands do without. It creates
consumer perceptions and values. When people buy Coca-Cola
they are not just buying the beverage but also the image that
goes with it, therefore to have the price higher reiterates the
fact that the product is of a better quality than the rest and that
the consumer is not cheap. This is known as value-based
pricing and is used by many other industries in attracting
consumers.
In India, the average income of a rural worker is Rs.500 a
month. Coca Cola launched a 200 ml bottle for just Rs.5, an
affordable amount on the pockets of the rural audience.

Fun Fact 8:Around the world, the average person

consumes a Coke product every four days.
 Place-Place:
•Intensive Distribution Strategy
•Warehouse & Delivery
•Marketing Channels
•Coverage
Coca-Cola entered foreign markets in various ways. The most
common modes of entry are direct exporting, licensing and
franchising.
Besides beverages and their special syrups, Coca-Cola also
directly exports its merchandise to overseas distributors and
companies. Other than exporting, the company markets
internationally by licensing bottlers around the world and
supplying them with the syrup needed to produce the product.
There are different types of franchising. The type that is used by
Coca-Cola Company is manufacturer-sponsored wholesaler
franchise system. It is very comparable to licensing but the only
difference is that the finished products are sold to the retailers
in local market.
Coca Cola has managed their company’s marketing and sales
strategy within channels. Have you ever considered the
significance of the Coke vending machine to the success and
profitability of the Coca Cola company? This channel is direct
to consumer and vending machines often have little to no
competition and no trade or price promotions.
The Coke Company operates three primary delivery systems for its
business channels:
– Bulk delivery for the channels of
large Supermarkets, Mass
Merchandisers and Club stores;
– For smaller channels Coke does
advanced sale delivery for
convenience stores, drug stores,
small supermarkets and onpremise
fountain accounts.
– Full service delivery for its full
service vending customers.

• Key Channel Listing

– Supermarkets
– Convenience Stores – Fast Food
– Petroleum Retailers
– Chain Drug Stores
– Hotels/Motels/Resorts Mass
Merchan-disers
– Vending

In 2006, the Company began changing its delivery method for its route
delivery system. Historically, the Company loaded its trucks at a
warehouse with products the route delivery employee would deliver.
The delivery employee was responsible for pulling the required
products off a side load truck at each customer location to fill the
customer's order. Coke began using a new CooLift® delivery system in
2006 in a portion of the Company's territory which involves pre-
building orders in the warehouse on a small pallet the delivery
employee can roll off a truck directly into the customer's location. The
CooLift® delivery system involves the use of a rear loading truck rather
than a conventional side loading truck. Coke will continue to rollout this
program over the next several years since they expect such significant
savings and more efficient deliveries. This is a huge investment for
Coke.
The company works through independent bottlers of Coke. They work
in coordination with the Coke company which produces the 'secret
formula concentrate' and ships to the distributors and bottlers for final
processing and packaging prior to shipment to the stores.
Coca-Cola floods all possible retailing stores in satisfying the third part,
place. In supermarkets and convenient stores, Coca-Cola products are
always easy to identify, and usually make up the greater proportion of
options to buy. This increases their market exposure through effective
use of the retailers. For a FMCG it is important that they can be found
and purchased easily. With many automatic Can machines located in
many sports stadiums and shopping malls, you don't even need to go to
a store to buy a drink. This greatly enhances the speed of purchase.
The company produces concentrate, which is then sold to various
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 in cans and bottles 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 and food service distributors.
The Coca-Cola Company only produces a syrup concentrate, which it
sells to various bottlers throughout the world who hold Coca-Cola
franchises for one or more geographical areas. The bottlers produce the
final drink by mixing the syrup with filtered water and sugar (or artificial
sweeteners) and then carbonate it before filling it into cans and bottles,
which the bottlers then sell and distribute to retail stores, vending
machines, restaurants and food service distributors.
The Coca-Cola Company owns minority shares in some of its largest
franchises, like Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola
Hellenic Bottling Company (CCHBC) and Coca-Cola FEMSA, but fully
independent bottlers produce almost half of the volume sold in the
world. Since independent bottlers add sugar and sweeteners, the
sweetness of the drink differs in various parts of the world, to cater for
local tastes.
Hellenic Bottling Company independent bottlers produce almost half of
the volume sold in the world. Since independent bottlers add sugar and
sweeteners, the sweetness of the drink differs in various parts of the
world, to cater for local tastes.

PROMOTION-
 Advertisements-
 Print Advertisement
 Radio
Advertisement
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
benefits 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)
Fun Fact 9:Coca-Cola spends more money
on advertising than Microsoft and Apple
combined.
Coca-Cola advertising budget (2010): $2.9
billion
Microsoft advertising budget (2010): $1.6
billion
Apple advertising budget (2010): $691 million
Implementation through
Advertising:
Brand Ambassadors:
Coca Cola: Imran Khan(Endorsement Fee:3.35 cr)
Aamir Khan(Endorsement Fee:10 cr)
Virendar Sehwag
Thums up-Akshay Kumar(Endorsement Fee: 5 cr)
Fanta-Genelia D’souza (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)

Implementation through
Advertising:
Mass Media:
Hollywood Movies : Borat, Click, Failure to Launch,
Glory
Road, Gridiron Gang, Hostel, Mission: Impossible III,
Silent Hill, The Covenant, The Departed
Bollywood Movies: Kaho Naa Pyar Hai, Rang De
Basanti, Taal, Shree 420, Kuch Naa Kaho, Bobby.

Campaigns & Collaborations:

• Domino’s
• Coke Studio with MTV

• Diwali Campaign: “Come Home on Deepawali”

• “Brrrrrr” Campaign

Budgets
Coca Cola has an global annual advertising budget of
$1.6 billion a year.

2011-12 Q1 Highlights(Coca Cola India):

Total Sales:$356.9 million
Operating Income:$19.2million
Net Profits:$6.4million
Earning per Share:$1.69
Current Trading Price:$63.70

Return on Equity:30.9%

Return on Assets:15.1%
 Return on Invested Capital:25.1%
Gross Profit Margin:68.4%

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:
• Water usage ratio reduced by more than 25% from
2004-2009
• Waste water treated to a level to support aquatic
life
• Rainwater harvesting potential equal to 93% of
ground water used.
Issues and Initiatives in India
•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.
The Initiative via Advertisements-
 Suggestions

•Cost efficiency: To get the achievement of cost

efficiency we have to keep certain points in our mind
they are resale of scraps, inventory management, work
distribution.
•Profit generation: In the SWOT analysis we have seen
there is a great opportunity products, these can be
turnkey for the company. The company should try to
work on export. They should lay more emphasis on
export.
•Improving technology: There is no doubt that the
product of company is not good. But from time to time
the regular improvement of the technology. It improves
the quality of the product as well as save the time.
Becoming a global player: With the last dealings we can
conclude that the company had satisfy there maximum
customers. After those dealings the company should try
to get a good name in India as well as in international
market.
• .
 CONCLUSION

Cocacola was founded in 1892 after the formula was invented by John S.
Pemberton with a mission to maximize shareowner’s value over time. The
company currently serves more than 500 brands in over 200 countries. The
ultimate objective of the business is to increase volume, expand the share of
worldwide nonalcoholic ready to drink beverages and create economic value.
The company started with setting realistic and unambiguous goals. The company
went ahead with goals of doubling the revenues by 2020, project the company as
a responsible corporate citizen, connect with global middle class by creating new
products. Being the biggest company in the soft drink industry, cocacola enjoys
the largest market share of 59% of the world share. The main objectives of the
company is to refresh the world in body, mind, and spirit. To inspire moments of
optimism through the brand and actions. The vision 2020 was planned keeping in
mid the interests of Profit, People, Portfolio, Partners and the Planet. The
cocacola company happens to be the no.1 with the maximum market share, it has
a strong brand name and does its marketing and advertisements very
aggressively. Cocacola aims to build a global brand and also has the potential and
sufficient capital for doing that. The company has to offer from a massive range of
beverages, intensive distribution strategy and effective marketing channels. The
cocacola company has always spent massive amount of capital in marketing and
advertisement. The company has used mass media including Hollywood and
Bollywood movies for promotions, collaborations with domino’s and MTV for the
show coke studio were also a part of its marketing campaign. The global annual
advertising budget of cocacola is $1.6 billion a year. The company took many
initiatives for groundwater depletion like Reduce, Recycle, Replenish. They
reduced the water usage ratio by more than 25% from 2004-2009. Even after
being through the pesticides controversy in 2006 the company managed to
survive and rise up again with its positive marketing campaigns and went on
becoming the market leader.
THANK YOU