Summer Internship Project 1

2010
Summer Internship Project

Kevin Kohli Amity University [Type text] 7/14/2010

BBA- 3rd Semester

Summer Internship Project

Index
History of Coke - 3 Bottling History - 6 Indian History - 12 Coca-Cola India-About the company Manifesto for growth - 32 Competitors to HCCBPL Coke v/s Pepsi 37 35 18

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Brands of Coca Cola - 46 Balance Sheet of Company - 66 Cash Flow of the Company - 69 Income Statement of the Company - 71 Success factors - 73 2001 Coke Marketing strategy The BIG turnaround 82 75

RED- An innovative distribution strategy - 96 Did you know these facts about Coca Cola? SWOT Analysis Questionnaire
Bibliography - 104

98

100 102

Summer Internship Project 3

History of Coke
THE EARLY DAYS
Coca-Cola was created in 1886 by John Pemberton, a pharmacist in Atlanta, Georgia, who sold the syrup mixed with fountain water as a potion for mental and physical disorders. The formula changed hands three more times before Asa D. Candler added carbonation and by 2003, Coca-Cola was the world s largest manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, with more than 400 widely recognized beverage brands in its portfolio. With the bubbles making the difference, Coca-Cola was registered as a trademark in 1887 and by 1895, was being sold in every state and territory in the United States. In 1899, it franchised its bottling operations in the U.S., growing quickly to reach 370 franchisees by 1910. Headquartered in Atlanta with divisions and local operations in over 200 countries worldwide, Coca-Cola

Cuba. quality inconsistent. Coca-Cola continued working for over 80 years on Woodruff s goal: to make Coke available wherever and whenever consumers wanted it. In spite of this reach. 4 INTERNATIONAL EXPANSION Coke s first international bottling plants opened in 1906 in Canada. machinery.Summer Internship Project generated more than 70% of its income outside the United States by 2003. and instead would use local bottles. and government regulation all serving as barriers. and Panama. and effective advertising a challenge with language. The Second World War proved to be the stimulus Coca-Cola needed to build effective capabilities around the world and achieve dominant global market share. By the end of the 1920 s Coca-Cola was bottled in twenty-seven countries throughout the world and available in fifty-one more. Woodruff s patriotic commitment that every man in uniform gets a bottle of Coca-Cola for five cents. culture. and personnel contributed to Coke s challenges as well with a lack of standard processes and training degrading quality. Former CEO Robert Woodruff s insistence that Coca-Cola wouldn t suffer the stigma of being an intrusive American product. trucks. caps. volume was low. in arm s reach of desire. .

Coca-Cola was exempt from sugar rationing and also received government subsidies to build bottling plants around the world to serve WWII troops. achieving only 0.Summer Internship Project wherever he is and at whatever cost to our company was more than just great public relations. . As a result of Coke s status as a military supplier. While per capita consumption throughout the world was a fraction of the United States . major beverage companies clearly had to look elsewhere for the growth their shareholders demanded.2% growth by 2000 (just under 10 billion cases) in contrast to the 5-7% annual growth experienced during the 1980 s. 5 TURN OF THE CENTURY GROWTH IMPERATIVE The 1990 s brought a slowdown in sales growth for the Carbonated Soft Drink (CSD) industry in the United States. The looming opportunity for twenty-first century was in the world s developing markets with their rapidly growing middle class populations.

Candler thanked him but took no action. Mississippi. Whitehead obtained exclusive rights to bottle Coca. One of his nephews already had urged that Coca-Cola be bottled. Lupton. Joseph A. Year 1899: The first bottling agreement Two young attorneys from Chattanooga. . Biedenharn sent a case to Asa Griggs Candler. soon joined their venture. In a meeting with Candler. A third Chattanooga lawyer. using a common glass bottle called a Hutchinson. Biedenharn. but Candler focused on fountain sales. He began bottling Coca-Cola to sell. Tennessee believed they could build a business around bottling Coca-Cola.Summer Internship Project 6 Bottling History In a candy store in Vicksburg.Cola across most of the United States for a sum of one dollar. John T. brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner. who owned the Company. Benjamin F. Thomas and Joseph B.

. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle.Summer Internship Project 7 Years 1900-1909: Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. nearly 400 Coca-Cola bottling plants were operating. By 1909. Some were open only during hot-weather months when demand was high. Today. A design from the Root Glass Company of Terre Haute. Year 1916: Birth of the Contour Bottle Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators.S. The Contour Bottle became one of the few packages ever granted trademark status by the U. Patent Office. most of them family-owned businesses. Indiana won enthusiastic approval. Their efforts were boosted by major progress in bottling technology. which improved efficiency and product quality. it is one of the most recognized icons in the world.

open-top metal coolers became the forerunners of automated vending machines. bottle sales of CocaCola exceeded fountain sales.Summer Internship Project 8 In the 1920s: Bottling overtakes fountain sales As the 1920s dawned. Six-bottle cartons were a huge hit starting in 1923. Their ideas and zeal fueled steady growth. Honduras. Belgium. more than 1.000 Coca-Cola bottlers were operating in the U. the Company began a major push to establish bottling operations outside the U. A few years later. Guatemala. By the time World War II began. Plants were opened in France. Coca-Cola was being bottled in 44 countries. . Italy and South Africa. Mexico. In the 1920s and 1930s: International expansion Led by Robert W.S. Woodruff. chief executive officer and chairman of the Board.S. By the end of the 1920s.

In the 1960s: Introduction of new brands Sprite. 12 and 26 ounce versions. Cans were also introduced. becoming generally available in 1960. or larger servings including 10. In the 1950s: Packaging innovations For the first time. permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. Fanta. 64 bottling plants were set up around the world to supply the troops. consumers had choices of Coca-Cola package size and type-the traditional 6. Today scores of other brands are offered to . Fresca and TAB joined brand Coca-Cola in the 1960s. Many of these war-time plants were later converted to civilian use.5 ounce Contour Bottle.Summer Internship Project 9 In the 1940s: Post-war growth During the war. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa.

Such customers required a new approach.Summer Internship Project meet consumer preferences in local markets around the world. 10 In the 1970s and 1980s: Consolidation to serve customers Advancement in technology led to global economy. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers.5 billion was committed to new bottling facilities in Africa. As the century closed. In the 1990s: New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. many small and medium-size bottlers consolidated to better serve giant international customers. retail customers of The Coca-Cola Company merged and evolved into international mega chains. more than $1. In response. . the Company invested heavily to build plants in Eastern Europe. After the fall of the Berlin Wall.

This heritage serves the Company well today as consumers seek brands that honor local identity and the distinctiveness of local markets.Summer Internship Project 11 21st Century: Coca-Cola today The CocaCola bottling system grew up with roots deeply planted in local communities. strong locally based relationships between Coca-Cola bottlers. customers and communities are the foundation on which the entire business grows. As was true a century ago. .

Summer Internship Project Indian History India is home to one of the most ancient cultures in the world dating back over 5000 years. Remnants of the caste system existed alongside the world s top engineering schools and growing metropolises as the historically agricultural economy shifted into the services sector. India had created the world s largest middle class. and greater than 40% were illiterate. At the beginning of the twenty-first century. 30% of the population knew English. This movement reached its peak in 1977 when the Janta party government came to power and Coca- . In the process. 12 In the decades that followed independence. the economy was increasingly regulated and many sectors were restricted to the public sector. At this time. As a result. self-reliance was taken to the extreme as many Indians believed that economic independence was necessary to be truly independent. the nation was in the midst of great transition and the dichotomy between the old India and the new were stark. second only to China. twenty-six different languages were spoken across India.

bottling. After a 16-year absence. In 1991. This combination of local and global brands enabled Coca-Cola to exploit the benefits of global branding and global trends in tastes while also tapping into traditional domestic markets. . Limca.Summer Internship Project Cola was thrown out of the country. and distribution assets but also strong consumer preference. cementing its presence with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network. Coca-Cola returned to India in 1993. the first generation of economic reforms was introduced and liberalization began. Coke s acquisition of local popular Indian brands including Thums Up (the most trusted brand in India). 13 COKE IN INDIA 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 Exchange Regulation Act (FERA) which governed the operations of foreign companies in India. Citra and Gold Spot provided not only physical manufacturing. Maaza.

profitability. including Coca-Cola. 750 crore) between September 2002 and March 2003. Coca-Cola India produced its beverages with 7. Encouraged by its 2002 performance. Sprite and Fanta. Coca-Cola India announced plans to double its capacity at an investment of $125 million (Rs. CocaCola India achieved 39% volume growth in 2002 while the industry grew 23% nationally and the Company reached breakeven profitability in the region for the first time. By 2003. In 2000. From 1993 to 2003. Shock energy drink and the powdered concentrate Sunfill hit the market. the company launched the Kinley water brand and in 2001. diet Coke. making it one of the country s top international investors.000 local employees at its twenty-seven wholly-owned bottling operations supplemented by seventeen franchiseeowned bottling operations and a network of twenty-nine contract-packers to manufacture a range of products for 14 . Coca-Cola India had won the prestigious Woodruf Cup from among 22 divisions of the Company based on three broad parameters of volume. Coca-Cola invested more than US$1 billion in India. and quality.Summer Internship Project Leading Indian brands joined the Company's international family of brands. plus the Schweppes product range.

powdered drinks. President and CEO of Coca-Cola India. supply. The complete manufacturing process had a documented quality control and assurance program including over 400 tests performed throughout the process.000 retail outlets serviced by a fleet that includes 10-ton trucks. Marketing and was instrumental to the company s success in developing a brand relevant to the Indian consumer and in tapping India s vast rural market potential.Summer Internship Project the company. joined Coke in 1997 as vice President. and distribution networks. open-bay three wheelers. and trademarked tricycles and pushcarts that were used to navigate the narrow alleyways of the cities. Coke indirectly created employment for another 125. Following his marketing responsibilities. The complexity of the consumer soft drink market demanded a distribution process to support 700. Sanjiv Gupta. In addition to its own employees. Seen as the driving force behind recent successful forays into packaged drinking water. Gupta served as Head of Operations for Company-owned bottling operations and then as Deputy President. and ready-to-serve tea and 15 .000 Indians through its procurement.

000 million and were expected to grow at least 10% per year through 2012. Coke and Pepsi dominated the market and together had a consolidated market share above 95%. by 2003 91% of sales were made to the lower. Soft drink sales in India grew 76% between 1998 and 2002. middle and upper middle classes. growing middle class.670 million bottles to over 10. and small towns where annual per capita consumption was less than four bottles. annual per capita consumption was only 6 .Summer Internship Project coffee. Gupta and his marketing prowess were critical to the continued growth of the Company. Ten percent of the country s population lived in urban areas or large cities and drank ten bottles of soda per year while the vast remainder lived in rural areas. villages. 16 THE INDIAN BEVERAGE MARKET India s one billion people. from 5. and low per capita consumption of soft drinks made it a highly contested prize in the global CSD market in the early twenty-first century. While soft drinks were once considered products only for the affluent. In spite of this growth.

73 in Thailand. tea. fruit juices. the rural market represented a significant opportunity for penetration and a critical battleground for market dominance. With its large population and low consumption. competitive pricing was essential. In response. 173 in the Philippines and 800 in the United States. In 2001.Summer Internship Project bottles versus 17 in Pakistan. and lassi. green coconut water. Coke launched a smaller bottle priced at almost 50% of the traditional package. Coca-Cola recognized that to compete with traditional refreshments including lemon water. 17 .

the Company took over ownership of the nation s top soft-drink brand and bottling network. 18 A Healthy Growth to the Indian Economy Coca-Cola India has made significant investments to build and continually consolidate its business in the country. In the same year. and marketing channels.Summer Internship Project Coca-Cola IndiaAbout the Company Coca-Cola. returned to India in 1993 after a 16 year hiatus. waste water treatment plants. giving a new thumbs up to the Indian soft drink market. distribution systems. It s no wonder their brands have assumed an iconic status in the minds of the world s consumers. including new production facilities. the corporation nourishing the global community with the world s largest selling soft drink concentrates since 1886. .

and indirectly creates employment for more than 125. and nutrition needs.000 people in related industries through its vast procurement. refreshment. The Indian operations comprises of 50 bottling operations. giving consumers the pleasure of worldclass drinks to fill up their hydration. and further pledged another US$100 million in 2003 for its operations. the business system of the Company directly employs approximately 6. having invested more than US$ 1 billion in India in the first decade. It has also been instrumental in giving an exponential growth to the country s job listings. supply. with another 25 being owned . and distribution system.000 people. 19 A Pure Commitment to the Indian Economy The Company has shaken up the Indian carbonated drinks market greatly. Creating Enormous Job Opportunities With virtually all the goods and services required to produce and market Coca-Cola being made in India. 25 owned by the Company.Summer Internship Project Coca-Cola India is among the country s top international investors.

Company has 65 manufacturing locations across 18 states of the country The company has one single environmental system. On the distribution front. As on June 2007. 20 VISION AND VALUES OF THE COMPANY Coca-Cola re-entered India in 1993. The eKO system is a tool that integrates environment management with business planning cycle. 10-tonne trucks open bay threewheelers that can navigate the narrow alleyways of Indian cities constantly keep our brands available in every nook and corner of the country s remotest areas.Summer Internship Project by franchisees. a network of 21 contract packers manufactures a range of products for the Company. The eKO system primarily comprises of two main facets namely: . eKO system. implemented at all its operations across the world. The vision of the company is to lead beverage revolution in the world and provide it s consumer quality beverages at affordable price. That apart.

At the core of The Coca-Cola Environmental Management System are five values that affirm the responsibilities of The Coca-Cola Company and serve as guidelines for our business partners around the world. ISO 14001 for Environment Management and OSHAS 18001 for Safety Management. Our officers. managers and employees assume responsibility for daily implementation of our environmental management system. Our five values are: Commitment Our commitment to protecting and preserving the environment extends throughout our organization. We believe that having effective environmental management systems requires the involvement of employees at all levels. 21 . Each of these values is supported by specific requirements and practices that govern our daily operations and are fundamental to achieving results consistent with environmental leadership.Summer Internship Project Environment Occupational Safety and Health (OSH) Both the facets are aligned with international management system standards.

Individuals with operational environmental responsibility regularly improve their environmental . Each plant designates a plant environmental coordinator. 22 Operations Support Operations management provides training to help personnel effectively implement environment management system. Operations Personnel Dedicated environmental team at Corporate. and evaluates their performance annually. Top management periodically reviews the progress on implementation of environmental projects. Operations management provides written descriptions of roles and responsibilities for environmental coordinators.Summer Internship Project Business Planning Operations plan environmental management activities through annual business planning.

at a minimum. Compliance Our commitment to the environment extends beyond compliance. meetings and other programs. The Coca-Cola eKOsystem or an equivalent environmental management system. seminars. 23 . we operate in an environmentally responsible manner in accordance with the environmental requirements of The Coca-Cola Company. Company Support The Company develops training programs to address system wide environmental topics and provides guidance on implementation. We are determined to integrate sound environmental practices into our daily business operations. Even in the absence of specific regulatory requirements.Summer Internship Project knowledge and expertise by participating in users. The Company works with our bottling partners to help them implement.

the company follows it's global standard on environment management. 24 .Summer Internship Project Legal Requirements Operations management is responsible for ensuring compliance with applicable environmental legal requirements. Example include carrying out Environmental Due Diligence prior to acquiring. The wastewater treatment plants are designed to comply with the company standards as well as the local SPCB standards. Wastewater Management The company operations are designed to minimize wastewater generation through implementation of "REDUCE" . In absence of local environmental regulations. The wastewater generated at each manufacturing location is treated as per local State Pollution Control Board (SPCB) requirement and company standards. "REUSE" and "RECYCLING" policy. eKO system. selling or leasing real estate.

25 Accountability We are accountable for our actions. selling or leasing real estate. wastewater treatment operations are required to be equipped with fish pond to demonstrate support of aquatic life in company's treated wastewater.Summer Internship Project As per company policy. Environmental Due Diligence Operations conduct environmental due diligence assessments prior to acquiring. The Company conducts due-diligence assessments of Company-led real estate transactions. documents the findings and takes necessary improvement actions. We are committed to continuously improving our environmental performance. The Coca-Cola Company conducts audits of its environmental performance and practices. .

in conjunction with local operations as appropriate. governments. communicates with stakeholders on environmental performance.Summer Internship Project Environmental. Informing Stakeholders y The Company establishes mechanisms to communicate effectively with employees. including environmental reporting. Operations establish procedures to regularly confirm compliance with local regulatory standards and requirements of The Coca-Cola eKOsystem.e.. Divisions/Regions) conducts internal EOSH audits periodically. shareowners and other stakeholders on environmental performance. consumers. . Occupational Safety & Health(EOSH) Audits 26 The Company's corporate function conducts EOSH audits of all bottling operations (both company owned as well as franchise operations) identified by Corporate Legal at regular intervals. Local Company management (i. y The Company.

Systems That Have Controlled Quality over a Century The testing and inspection requirements. internationally recognized registrars. The entire system of The Coca-Cola Company is applicable throughout the bottling operations and is supported with the same technical and quality tools. 27 . procedures and standards. The Coca-Cola quality system Assurance layer meets the intent of international standards ISO 9001:2000.Summer Internship Project ASSURANCE & CONTROLMeeting International Certifications Of Assurance Coca-Cola ensures that the world s most acknowledged Quality Assurance mechanisms have tested your drink before you taste your favorite beverage. The operations Division of CocaCola India is governing and supporting each of its bottling units so as to enable them produce world-class products. SGS and Lloyds of London. ISO 14001 and OHSAS 18001. which have been part of the Company s day-to-day operations for more than 100 years are strictly adhered to. benchmarked The Coca-Cola Quality System against ISO 9001:2000(Quality) and ISO 14001 (Environmental). We guarantee that each operation must achieve the exactly the same end results. systems.

particularly Coca-Cola. joy fun to our stakeholders. When we bring refreshment.Summer Internship Project PROMISE OF THE COMPANYThe Symbol of Quality Customer and Consumer Satisfaction Responsible Citizen of the World 28 The basic propositions of our business are simple. value. then we successfully nurture and protect our brands. . solid and timeless. That is key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners to our business.

Statutes and Consents. We will carry out our operations in ways that Protect. Towards this objective. Our activities are guided by Coca-Cola eKOsystem. Preserve and Enhance the Environment we work in. it shall endeavor to: Establish. which provides a framework to transform this principle in actions. maintain and operate facilities to comply with all applicable Environmental Safety and Health laws.Summer Internship Project ENVIRONMENT POLICY We at Coca-Cola India are in the business of beverages that refresh people. Formulating sound environmental objectives and targets and integrate a continuous process review in all essential elements of corporate management. 29 . Conservation of natural resources specifically in water. energy and Fuel by continually improving its usage and reducing wastage.

Summer Internship Project Working as catalyst to enhance collection of post consumer PET bottles through awareness programs and synergizing relevant agencies for getting better pricing to the consumer. Religious. Advertising initiatives are to be critically evaluated while advertising in Eco-sensitive areas. Private and Governmental Organizations in identifying solutions to relevant environmental issues. Political Buildings & Structures and other specially protected and sensitive areas. improving & tracking fuel efficiency and effectively managing wastes. Managing fleet operations in a manner to minimize environmental impacts by ensuring good maintenance. 30 . Seek Co-operation with Public. Using cooling equipment with environmentally friendly technologies. Do not put advertisement on Historical Monuments.

. 31 This policy has been communicated to all associates of Coca-Cola India to ensure compliance and shall be made available to public and interested parties on demand. Ensuring all operations implement eKO Management System and requirements under ISO 14001 before December 2004.Summer Internship Project Ensuring Procurement policies that consider the environmental impact of packaging materials and all direct and indirect process aids used within the operation.

create. imagine.Summer Internship Project Manifesto for growth VALUES: Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by. delight QUALITY: What we do. we do well 32 . the values being: LEADERSHIP: The courage to shape a better future PASSION: Committed in heart and mind INTEGRITY: Be real ACCOUNTABILITY: If it is to be. it s up to me COLLABORATION: Leverage collective genius INNOVATION: Seek.

.Everywhere we engage.Summer Internship Project MISSION: To Refresh the World. mind. PARTNERS: Nurturing a winning network of partners and building mutual loyalty. and spirit To Inspire Moments of Optimism.In body. 33 VISION FOR SUSTAINABLE GROWTH: PROFIT: Maximizing return to shareowners while being mindful of our overall responsibilities. PEOPLE: Being a great place to work where people are inspired to be the best they can be. PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples Desires and needs.Through our brands and our actions To Create Value and Make a Difference.

34 .Summer Internship Project PLANET: Being a responsible global citizen that makes a difference.

carbonated soft. to keep up with archrival. and Aquafina water. But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition to the products of the Company.Summer Internship Project Competitors to HCCBPL The competitors to the products of the company mainly lie in the non. PepsiCo and Coca-Cola hold together. Cola is not the company's only beverage. Nestlé: Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk products.drink maker. PepsiCo sells Tropicana orange juice brands. the Coca-Cola Company never ends for the World's # 2. Iced tea is one of the closest 35 . PepsiCo also sells Dole juices and Lipton ready-to-drink tea. and Slice. Mountain Dew. a market share of 95% out of which 60. The company's soft drinks include Pepsi. Gatorade sports drink. Baby foods and Chocolates.8% is held by Coca-Cola and the rest belongs to Pepsi. The key competitors in the industry are as follows: PepsiCo: The PepsiCo challenge.alcoholic beverage industry consisting of juices and soft drinks.

is one of the most trusted brands as it has been operating ever since times and people have laid all their trust in the Company and the products of the Company. Dabur has introduced into the market Real Juice which is packaged fresh fruit juice.Summer Internship Project substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. 36 Dabur: Dabur in India. Apart from food products. These products give a strong competition to Maaza and the latest product Minute Maid Pulpy Orange. . The flavored milk products also have become substitutes to the products of the company due to growing health awareness among people.

Summer Internship Project Coke v/s Pepsi 37 .

Pepsi was marketed and sold as Lehar Pepsi until 1991 when the use of foreign brands was allowed under the new economic policy and Pepsi ultimately bought out its partners. it allowed Pepsi to gain precious early experience with the Indian market and also served as an introduction of the Pepsi brand to the Indian consumer such that it was well-poised to reap the benefits when liberalization came. As early as 1985. becoming a fullyowned subsidiary and ending the JV relationship in 1994. Pepsi tried to gain entry into India and finally succeeded with the Pepsi Foods Limited Project in 1988.Summer Internship Project The post-liberalization period in India saw the comeback of cola but Pepsi had already beaten CocaCola to the punch. While the joint venture was only marginally successful in its own right. creatively entering the market in the 1980 s in advance of liberalization by way of a joint venture. and Voltas India Limited. as a JV of PepsiCo. Pepsi s appeal focused on youth and when Coke entered India in 38 . Though Coke benefited from Pepsi creating demand and developing the market. Punjab governmentowned Punjab Agro Industrial Corporation (PAIC). Pepsi s head-start gave Coke a disadvantage in the mind of the consumer.

S. Coca-Cola. marketer. was the world s largest manufacturer. with more than 400 widely recognized beverage brands in its portfolio and local operations in over 200 countries worldwide. Georgia (U. .A) who sold the syrup mixed with fountain water as a potion for mental and physical disorders. and distributor of non-alcoholic beverage concentrates and syrups. it failed to resonate as expected. 39 Coca Cola: Coca-Cola was created in 1886 by John Pemberton. a pharmacist in Atlanta. in that the logos of both the companies are extremely strong and use colors and fonts intelligently. The formula changed hands three times before Asa D.Summer Internship Project 1993 and approached the market selling an American way of life. Candler added carbonation and by 2003. It is the intense rivalry between the two and the changes that their logos have undergone over the past century that will be highlighted here. The Pepsi v/s Coke story represents a small twist.

like the product itself. The typeface used. It has since then become the brand s corporate identity. in 1885. The logo got registered as a trademark in 1887 and was first advertised in the Atlanta Journal in 1915. Frank Mason Robinson. The first Coca-Cola logo was created by John Pemberton s partner and bookkeeper. known as Spenserian script. The red and white colored scheme in the Coca-Cola logo was kept simple and distinctive to lure young minds. Even the Coca-Cola bottle symbolized the youthful exuberance of America . Thinking that the two Cs would look well in advertising. 40 . was developed in the mid 19th century and was the dominant form of formal handwriting in the United States during that period. it was Robinson who came up with the name Coca Cola and chose the logo s distinctive cursive script. is rated among the most recognized logos and brands in the world.Summer Internship Project The Coca-Cola logo.

where he served his customers refreshing drinks. NY with interests in manufacturing and marketing a wide variety of carbonated and non-carbonated beverages. Pizza Hut. Gatorade. Mirinda and 7-Up. and other foods. pepsin and cola nuts. Besides the Pepsi-Cola brands. Brad s drink . and Taco Bell.Summer Internship Project Pepsi: PepsiCo. that he created himself. as well as salty. was later renamed Pepsi Cola in 1898 after the pepsin and cola nuts used in the recipe. The new name was . but these fast-food restaurants were spun off into Tricon Global Restaurants. vanilla. now Yum! Brands. American multinational corporation headquartered in Purchase. the company owns the brands Quaker Oats. created in the summer of 1893. Incorporated is a Fortune 500. North Carolina was a pharmacist. Frito Lay. rare oils. It also owned KFC. Mountain Dew. sugar. sweet and grain-based snacks. Tropicana. 41 Caleb Bradham of New Bern. His most popular beverage was something he called Brad s drink made of carbonated water. Inc. He had a soda fountain in his drugstore.

. PepsiCo surpassed Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. 1903. Charles G. Pepsi Cola was bought by the Loft Candy Company Loft president. Caleb Bradham lost Pepsi Cola when he gambled on the fluctuations of sugar prices during World War I.Summer Internship Project trademarked on June 16th. Bradham s neighbor. 42 After seventeen years of success. In 1931. Guth struggled to make a success of Pepsi and even offered to sell Pepsi to the Coca-Cola company. an artist designed the first Pepsi logo. In December 2005. who refused to offer a bid. Guth who reformulated the popular soft drink.

Coca Cola on the other hand is a true example of how a brand should be consistent to their corporate identity. Coke understood the importance of branding and the creation of a distinct personality whilst Pepsi has been the perennial and persistent challenger. The companies. The squabbling is mainly in the arena of advertising and logo design. Pepsi logos are like a trip through 20th century Americana. have about an equal percentage share of the market. Coca-Cola 43 . From the beginning.Summer Internship Project Rivalry between Pepsi & Coca Cola: The two companies and their principal products are complete substitutes for each other. Pepsi has changed its logo and its slogans a number of times since its introduction in 1898. more or less. Though there is much truth in the argument that a logo that always changes is unsettling and this could be a bad thing but Pepsi has had a dream run with all the tinkering it has engineered in its logo. Today. Every change has attempted to capture the time perfectly right upto the last change that seeks affinity with President Obama s campaign.

Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveal its formula to the . amazingly similar to what it was 124 years ago. Soft drinks market in India: Coca-Cola and PepsiCo together control about 90% of the carbonated beverage market in India.the fact that red has been added to what is a predominantly blue logo has been the real major factor for Pepsi s performance. the combination of red and blue heralded the turn around in that brand s performance.Summer Internship Project logo is. in India. 44 Colors: Without doubt Red is a better color for a company into foods and beverages. Even in the case of Thums Up. While in no way running down the efforts of PepsiCo I state as follows:. There is ample evidence that red triggers hunger which is the reason behind the fact that Red is the first choice for the logo and décor of most restaurants etc. of course.

and distribution assets but also strong consumer preference. Limca. Citra and Gold Spot provided not only physical manufacturing. cementing its presence with a deal that gave Coca-Cola ownership of the nation s top soft-drink brands and bottling network. Maaza. Coca-Cola invested more than US$1 billion in India. 45 From 1993 to 2003. bottling. This combination of local and global brands enabled Coca-Cola to exploit the benefits of global branding and global trends in tastes while also tapping into traditional domestic markets. making it one of the country s top international investors.Summer Internship Project government and reduce its equity stake as required under the Foreign Exchange Regulation Act (FERA) which governed the operations of foreign companies in India. Coca-Cola returned to India in 1993. Coke s acquisition of local popular Indian brands including Thums Up (the most trusted brand in India). . After a 16-year absence.

Summer Internship Project 46 Brands of Coca Cola COCA COLA THUMS-UP SPRITE FANTA LIMCA MAAZA GEORGIA KINLEY MINUTE MAID PULPY ORANGE MINUTE MAID NIMBU FRESH .

BUT ITS POPULARITY HAS MADE IT TRULY UNIVERSAL. CREATED IN ATLANTA. GEORGIA. JOHN S. BY DR. IN 1899. THE COCACOLA COMPANY BEGAN FRANCHISED BOTTLING OPERATIONS IN THE UNITED STATES. REGISTERED AS A TRADEMARK IN 1893 AND BY 1895 IT WAS BEING SOLD IN EVERY STATE AND TERRITORY IN THE UNITED STATES. PATENTED IN 1887. YOU CAN FIND COCA-COLA IN VIRTUALLY EVERY PART OF THE WORLD. PEMBERTON. COCA-COLA WAS INTRODUCED IN 1886. AS WELL AS THE BEST-KNOWN PRODUCT IN THE WORLD. . COCA-COLA WAS FIRST OFFERED AS A FOUNTAIN BEVERAGE BY MIXING COCA-COLA SYRUP WITH CARBONATED WATER. TODAY.Summer Internship Project COCA-COLA DRINK TYPE: SOFT DRINK COCA-COLA IS THE MOST POPULAR AND BIGGEST-SELLING SOFT DRINK IN HISTORY. 47 COCA-COLA MIGHT OWE ITS ORIGINS TO THE UNITED STATES.

JOHN PEMBERTON CONCOCTED THE COCA COLA FORMULA IN A THREE LEGGED BRASS KETTLE IN HIS BACKYARD. GEORGIA. 1886. FRANK ROBINSON ALSO HAD EXCELLENT PENMANSHIP. COCA COLA WAS INVENTED BY DOCTOR JOHN PEMBERTON A PHARMACIST FROM ATLANTA. SO THE FIRST YEAR OF SALES WERE A LOSS. THE NAME WAS A SUGGESTION GIVEN BY JOHN PEMBERTON'S BOOKKEEPER FRANK ROBINSON. SALES FOR THAT FIRST YEAR ADDED UP TO A TOTAL OF ABOUT $50. BEING A BOOKKEEPER. ABOUT NINE SERVINGS OF THE SOFT DRINK WERE SOLD EACH DAY.Summer Internship Project 48 HISTORY IN MAY. THE FUNNY THING WAS THAT IT COST JOHN PEMBERTON OVER $70 IN EXPANSES. IT WAS HE WHO FIRST SCRIPTED "COCA COLA" INTO THE FLOWING LETTERS WHICH HAS BECOME THE FAMOUS LOGO OF TODAY. 1886. . THE SOFT DRINK WAS FIRST SOLD TO THE PUBLIC AT THE SODA FOUNTAIN IN JACOB'S PHARMACY IN ATLANTA ON MAY 8.

THE SOFT DRINK. CONTAINED EXTRACTS OF COCAINE AS WELL AS THE CAFFEINE-RICH KOLA NUT. 2LTR.5LTR. 49 DIFFERENT PACKAGES CAN 330ML PET BOTTLE-500ML. 1.Summer Internship Project UNTIL 1905. 2. MARKETED AS A TONIC.5 LTR & 500ML+100ML .

1LTR . 500ML.Summer Internship Project FOUNTAIN-VARIOUS SIZES 50 GLASS-200ML. 300ML.

. RED THUMBS UP LOGO IS COMMON. THUMS-UP IS KNOWN FOR ITS STRONG. WHERE ITS BOLD. THUMS UP. LATER RE-LAUNCHED IT IN ORDER TO COMPETE AGAINST PEPSI. MATURE AND UNIQUELY MASCULINE ATTITUDE. THE BRAND WAS BOUGHT OUT BY COCA-COLA WHICH. HISTORY INTRODUCED IN 1977 TO OFFSET THE EXPULSION OF THE COCA-COLA COMPANY AND OTHER FOREIGN COMPANIES FROM INDIA. IT SEPERATES MEN FROM BOYS. AND CAMPA COLA GAINED NATIONWIDE ACCEPTANCE. AFTER UNSUCCESSFUL ATTEMPTS AT KILLING THE BRAND.Summer Internship Project 51 THUMS-UP DRINK TYPE: SOFT DRINK THUMS UP IS A CARBONATED SOFT DRINK (COLA) POPULAR AND LARGEST SELLING BRAND IN INDIA. LIMCA. FIZZY TASTE AND ITS CONFIDENT. IT IS SIMILAR IN FLAVOUR TO OTHER COLAS BUT HAS A UNIQUE TASTE REMINISCENT OF BETEL NUT.

500ML+100ML FOUNTAIN.200ML.500ML.5LTR. 2. 2LTR.25LTR.UP ARE MOST PREFFERED . 500ML.Summer Internship Project DIFFERENT PACKAGES CAN.330ML 52 PET BOTTLE. 1. 1LTR CAN AND G LASS BOTTLES(RETURNABLE ONE S OF 200ML AND 300ML) OF THUMS. 300ML.VARIOUS SIZES GLASS.

TART AND NOT-TOO-SWEET DRINK MIXER. MILLIONS OF PEOPLE ENJOY SPRITE BECAUSE OF ITS CRISP. MANY YEARS AFTER SPRITE'S INTRODUCTION. BUT SPRITE ALSO HAS AN HONEST. IN THE 1980S. SPRITE IS SOLD IN MORE THAN 190 COUNTRIES AND RANKS AS THE NO.Summer Internship Project SPRITE DRINK TYPE: SOFT DRINK INTRODUCED IN 1961. EARLY MAGAZINE ADVERTISEMENTS PROMOTED IT AS A SOMEWHAT SOPHISTICATED. SPRITE IS THE WORLD'S LEADING LEMON-LIME FLAVORED SOFT DRINK.4 SOFT DRINK WORLDWIDE. STRAIGHTFORWARD ATTITUDE THAT SETS IT APART FROM OTHER SOFT DRINKS. 53 HISTORY SPRITE WAS INTRODUCED TO THE UNITED STATES IN 1961 TO COMPETE AGAINST 7 UP. COKE PRESSURED ITS LARGE BOTTLERS THAT DISTRIBUTED 7 . SPRITE ENCOURAGES YOU TO BE TRUE TO WHO YOU ARE AND TO OBEY YOUR THIRST. TO BE USED (SIMILAR TO TONIC WATER OR GINGER ALE) WITH ALCOHOLIC BEVERAGES SUCH AS WHISKEY AND VODKA. CLEAN TASTE THAT REALLY QUENCHES YOUR THIRST. WITH A STRONG APPEAL TO YOUNG PEOPLE.

DIFFERENT PACKAGING 54 RGB (RETURNABLE GLASS BOTTLE) 200ML. SPRITE FINALLY BECAME THE LEADER POSITION IN THE LEMON SODA CATEGORY IN 1978. IN A LARGE PART DUE TO THE STRENGTH OF THE COCA-COLA SYSTEM OF BOTTLERS. 300ML .Summer Internship Project UP TO REPLACE THE SODA WITH THE COCA-COLA PRODUCT.

2. 600ML.5LTR. 1.25LTR CAN.25LTR.500ML.330ML FOUNTAIN.VARIOUS SIZES . 2LTR. 1.Summer Internship Project 55 PET.

THE MAN IN CHARGE . BOLD FRUIT TASTE AND TINGLY CARBONATION. OVER THE YEARS IT HAS NOW OCCUPIED A STRONG MARKETPLACE AND IS IDENTIFIED WITH THE FUN. FANTA WAS INTRODUCED IN THE UNITED STATES IN 1960. THEREFORE WAS NOT ABLE TO IMPORT THE SYRUP NEEDED TO PRODUCE COCA-COLA IN GERMANY. CONSUMERS AROUND THE WORLD. THIS POSITIVE IMAGERY IS DRIVEN BY THE BRAND'S FUN. HISTORY FANTA ORIGINATED WHEN A TRADING BAN WAS PLACED ON NAZI GERMANY BY THE ALLIES DURING WORLD WAR II. PARTICULARLY TEENS. PLAYFUL PERSONALITY. THE COCA-COLA GMBH. YOUNG PEOPLE OR IS KNOWN AS THE FUN CATALYST. MAX KEITH. FONDLY ASSOCIATE FANTA WITH HAPPINESS AND SPECIAL TIMES WITH FRIENDS AND FAMILY.Summer Internship Project 56 FANTA DRINK TYPE: SOFT DRINK AVAILABLE IN EUROPE SINCE THE 1940S. WHICH GOES HAND IN HAND WITH ITS BRIGHT COLOR. AS A RESULT.

AS KEITH LATER RECALLED. WHICH STARTED WITH KEITH EXHORTING HIS TEAM TO "USE THEIR IMAGINATION" ("FANTASIE" IN GERMAN). THE NAME WAS THE RESULT OF A BRIEF BRAINSTORMING SESSION. 300ML FOUNTAIN-VARIOUS SIZES . DECIDED TO CREATE A NEW PRODUCT FOR THE GERMAN MARKET. 1. INCLUDING WHEY AND POMACE THE "LEFTOVERS OF LEFTOVERS". JOE KNIPP. 2LTR. TO WHICH ONE OF HIS SALESMEN.Summer Internship Project OF COCA-COLA'S OPERATIONS IN GERMANY DURING THE 57 SECOND WORLD WAR. 2.25LTR & 500ML+100ML GLASS-200ML.5LTR. USING ONLY INGREDIENTS AVAILABLE IN GERMANY AT THE TIME. IMMEDIATELY RETORTED "FANTA! DIFFERENT PACKAGING CAN-330ML PET BOTTLE-500ML.

NATIONAL TREASURE IN INDIA. IT'S A HOME-GROWN.S.Summer Internship Project LIMCA DRINK TYPE: SOFT DRINK THIS THIRST-QUENCHING BEVERAGE FEATURES A FRESH. COCA-COLA BOUGHT LOCAL SOFT-DRINK (SODA) BRANDS INCLUDING LIMCA. IN 1992. . WHERE IT WAS ACQUIRED BY THE COCA-COLA COMPANY IN 1993. WHEN THE INDIAN GOVERNMENT ALLOWED COCACOLA TO RETURN FOR OPERATIONS. LIMCA CONTINUES TO BUILD A LOYAL FOLLOWING AMONG YOUNG ADULTS WHO LOVE THE LIGHTHEARTED WAY IT COMPLEMENTS THE BEST MOMENTS OF THEIR LIVES. AT THE SAME TIME AS IT ADMITTED PEPSI FOR THE FIRST TIME. LIGHT LEMON-LIME TASTE AND FUN-LOVING ATTITUDE. 58 HISTORY LIMCA IS A LEMON AND LIME FLAVOURED CARBONATED SOFT DRINK MADE PRIMARILY IN INDIA AND CERTAIN PARTS OF THE U. LIMCA ALSO RELEASES AN INDIAN VERSION OF THE GUINNESS BOOK OF WORLD RECORDS KNOWN AS LIMCA BOOK OF RECORDS . APART FROM PRODUCING BEVERAGE DRINKS.

2. 2LTR.5LTR GLASS-200ML. 500ML+100ML FREE.Summer Internship Project DIFFERENT PACKAGING CAN-330ML PET-500ML. 1.25LTR. 1.5LTR. 300ML FOUNTAIN-VARIOUS SIZES 59 .

MAAZA WAS ACQUIRED BY COCA-COLA . IT HAD ACQUIRED RIGHTS TO THE MAAZA BRAND IN THESE COUNTRIES THROUGH MAAZA INTERNATIONAL CO LLC DUBAI. IN INDIA . THE UNION BEVERAGES FACTORY.Summer Internship Project MAAZA DRINK TYPE: JUICE/JUICE DRINK THE HISTORY OF MAAZA BEGINS IN THE LATE FIFTIES IN INDIA. A NEW DRINK WAS BORN. TODAY MAAZA CAN TRULY BE CALLED A WORLD BRAND. PRODUCTION. WHERE THE IDEA CAME ABOUT TO MAKE JUICE OUT OF MANGO PUREE. BY 1995. FOLLOWED BY AMERICA AND EUROPE IN THE EARLY EIGHTIES. BEGAN SELLING MAAZA AS A FRANCHISEE IN THE MIDDLE EAST AND AFRICA IN 1976. BASED IN THE UNITED ARAB EMIRATES. QUALITY AND HANDY GLASS BOTTLE MAAZA BECAME VERY POPULAR! IN THE EARLY SEVENTIES MAAZA S SUCCESS STORY SPREAD ACROSS THE BORDERS. 60 HISTORY MAAZA WAS LAUNCHED IN 1976 IN INDIA. DISTRIBUTION AND MARKETING STARTED IN THE MIDDLE EAST AND SINGAPORE. MAAZA MANGO! LOVED FOR IT S TASTE.

AS FOR NORTH AMERICA. MAAZA WAS ACQUIRED BY HOUSE OF SPICES IN 2005. CITRA.2LTRRGB 250MLRGB 200ML- . 61 DIFFERENT PACKAGING POCKET MAAZA 200MLPET BOTTLE 250MLPET BOTTLE 600MLPET BOTTLE 1.Summer Internship Project INDIA IN 1993 FROM PARLE-BISLERI ALONG WITH OTHER BRANDS SUCH AS LIMCA. THUMS UP AND GOLD SPOT.

MALLS. THE GEORGIA GOLD RANGE OF TEA AND COFFEE BEVERAGES INCLUDES FRESHLY GROUND ROASTED COFFEE. ICED TEAS AND COLD COFFEES. CINEMAS. HOT BEVERAGES INCLUDEESPRESSO AMERICANO CAPPUCCINO CAFFE LATTE MOCHACINO HOT CHOCOLATE CARDAMOM TEA COLD BEVERAGES INCLUDEICED TEAS COLD COFFEE 62 . CARDAMOM TEA. HOT CHOCOLATE DRINK.IT IS AVAILABLE IN RESTAURANTS. AIRPORTS AND IN ALL CORPORATES ACROSS ALL MAJOR METROS IN INDIA.Summer Internship Project GEORGIA INTRODUCED IN 2004.

1ltr 63 . Different Packaging500ml.Summer Internship Project KINLEY Brand Type: Mineral Water Kinley is used as a carbonated drink in the west and some parts of Europe but in India it is a brand that guarantees safe mineral water to drink.

1 LTR. DIFFERENT P ACKAGING: 400ML. THE NAME ORIGINATED BECAUSE THE ORANGE JUICE USING THE POWDER COULD BE MADE IN A M INUTE. HENCE THE NAME M INUTE MAID. 1.Summer Internship Project MINUTE MAID PULPY ORANGE DRINK TYPE: JUICE THE HISTORY OF THE MINUTE MAID BRAND GOES BACK AS FAR AS 1945 WHEN THE F LORIDA FOODS CORPORATION DEVELOPED ORANGE JUICE POWDER.25 LTR 64 . MINUTE M AID WAS LAUNCHED IN I NDIA IN THE YEAR 2007 STARTING WITH SOUTHERN INDIA IN A AIM TO STRENGTHEN COCA COLA S STRENGTH IN THE JUICE D RINK CATEGORY.

Summer Internship Project MINUTE MAID NIMBU FRESH DRINK TYPE: JUICE DRINK A VERY NEW BRAND INTRODUCED ONLY 6 MONTHS BACK. DIFFERENT P ACKAGING: 400ML. BUT HAS EVENTUALLY MOVED INTO THE OTHER STATES OF THE COUNTRY BECAUSE OF THE POSITIVE RESPONSE IT HAS GOT. 1 LTR 65 . MINUTE M AID STARTED OUT IN INDIA WITH THE STATE OF TAMIL NADU.

225.000 2.976.000 8.187.000 6.000 1.000 31-Dec-08 31-Dec-07 Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets 4.000 4.000 2.476.755.000 3.800.671.000 17.531.000 2.000 3.000 48.000 1.Summer Internship Project 66 Balance Sheet of Coca Cola Company Past 3 years: PERIOD ENDING 31-Dec-09 Assets Current Assets 6.779.326.224.277.093.701.963.000 23.059.000 9.000 1.401.000 43.721.000 2.260.000 13.176.105.959.029.000 Accounts Payable Short/Current Long Term Debt Other Current Liabilities 6.000 7.000 4.000 547.220.000 6.988.000 278.000 1.493.000 12.000 5.758.000 Liabilities Current Liabilities 6.000 12.000 2.192.519.052.000 3.675.090.580.781.920.921.000 1.777.000 3.000 4.000 3.000 Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill Total Liabilities .000 20.000 6.551.000 2.000 7.000 6.047.000 2.000 8.000 5.000 21.000 2.000 4.000 12.000 13.000 305.890.256.226.269.872.354.152.733.133.000 3.173.000 8.000 7.561.000 2.317.000 8.000 40.000 877.965.000 215.604.525.

000 6.000 14.100.000 16.561.226.674.472.000 2.000) 20.744.525.000 3.000 $7.000 21.000 298.000 46.000 16.992.537.000 2.976.000 626.000 (2.192.000 6.604.537.000 .000 3.846.000 8.000 1.000 (25.525.000 8.959.Summer Internship Project 67 Stockholders' Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity Net Tangible Assets 880.000 9.000 1.000 8.372.198.000 36.000 366.000) 24.298.092.000 2.967.000 47.107.398.000 4.000 8.054.000 8.235.000 3.000 $9.483.859.000 5.465.000 4.758.000 41.000 3.000 880.910.647.000 (23.755.000 $11.513.551.966.535.000 (24.375.000 6.000 2.000 2.757.000 4.000 2-Oct-09 3-Jul-09 3-Apr-09 Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets 8.341.000 880.816.904.481.099.139.000 7.799.000 (757.000) 8.000 9.000) 7.000 PAST 4 QUARTERS: PERIOD ENDING 31-Dec-09 Assets Current Assets 6.000) 7.224.000 8.000 2.000 2.000 6.000 2.000 279.425.971.378.000 1.714.000 1.000 2.426.793.213.061.095.292.000 17.988.000 48.354.000 43.000 38.000 3.671.103.746.

000 13.517.330.000 880.000 $8.000 .169.000 2.051.028.000 6.000 (1.Summer Internship Project 68 Liabilities Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill Total Liabilities 6.391.921.186.021.000 20.000 3.000 (757.000 6.000 23.000 8.000 2.955.059.000 Stockholders' Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity Net Tangible Assets 880.000) (24.000 865.911.398.000 8.000) (2.000 7.944.000 1.000 23.971.000 13.965.007.000) 23.298.000 547.000) 23.000 880.207.000) 24.000 6.000 6.000) 8.000) (24.000 5.174.343.537.000 40.000 (25.000 5.000 467.000 5.872.000 (1.224.000 13.136.017.537.000 22.567.000 $10.000 22.000 38.000 902.999.712.431.124.123.000 7.799.000 396.000 41.000 $11.893.537.721.944.000 8.000 $11.753.000) (24.890.800.000 880.299.000 7.000 3.000 5.227.000 39.111.580.162.017.000 1.152.410.000 13.

Summer Internship Project 69

Cash Flow of Coca Cola Company
Past 3 years:
PERIOD ENDING

Net Income

31-Dec-09 6,824,000

31-Dec-08 5,807,000

31-Dec-07 5,981,000

Operating Activities, Cash Flows Provided By or Used In Depreciation 1,236,000 1,228,000 Adjustments To Net Income 608,000 1,224,000 Changes In Accounts Receivables 148,000 Changes In Liabilities (734,000) Changes In Inventories (165,000) Changes In Other Operating Activities (564,000) 63,000 Total Cash Flow From Operating Activities 8,186,000 7,571,000

1,163,000 (406,000) 914,000 (258,000) (244,000) 7,150,000

Investing Activities, Cash Flows Provided By or Used In Capital Expenditures (1,993,000) (1,968,000) Investments (2,152,000) (240,000) Other Cashflows from Investing Activities (4,000) (155,000) Total Cash Flows From Investing Activities (4,149,000) (2,363,000)

(1,648,000) 349,000 (5,420,000) (6,719,000)

Financing Activities, Cash Flows Provided By or Used In Dividends Paid (3,800,000) (3,521,000) Sale Purchase of Stock (856,000) (493,000) Net Borrowings 2,363,000 29,000 Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents (2,293,000) (3,985,000) 576,000 (615,000) $2,320,000 $608,000

(3,149,000) (219,000) 4,341,000 973,000 249,000 $1,653,000

Summer Internship Project 70

Past 4 quarters:
PERIOD ENDING

Net Income

31-Dec-09 2-Oct-09 3-Jul-09 3-Apr-09 1,543,000 1,873,000 2,049,000 1,359,000

Operating Activities, Cash Flows Provided By or Used In Depreciation 331,000 320,000 302,000 283,000 Adjustments To Net Income 565,000 (23,000) (175,000) 241,000 Changes In Accounts Receivables Changes In Liabilities Changes In Inventories Changes In Other Operating Activities (573,000) 406,000 613,000 (1,010,000) Total Cash Flow From Operating Activities 1,916,000 2,608,000 2,789,000 873,000

Investing Activities, Cash Flows Provided By or Used In Capital Expenditures (594,000) (419,000) (513,000) Investments (2,132,000) (3,000) (11,000) Other Cashflows from Investing Activities 137,000 26,000 (41,000) Total Cash Flows From Investing Activities (2,589,000) (396,000) (565,000)

(467,000) (6,000) (126,000) (599,000)

Financing Activities, Cash Flows Provided By or Used In Dividends Paid (950,000) (951,000) (949,000) (950,000) Sale Purchase of Stock (1,081,000) 155,000 60,000 10,000 Net Borrowings 622,000 (230,000) (786,000) 2,757,000 Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents (1,409,000) (1,026,000) (1,675,000) 1,817,000 257,000 13,000 282,000 24,000

($1,825,000) $1,199,000

$831,000 $2,115,000

Summer Internship Project

Income Statement of Coca Cola Company
Past 3 years:
PERIOD ENDING

71

Total Revenue Cost of Revenue Gross Profit

31-Dec-09 30,990,000 11,088,000 19,902,000 Operating Expenses

31-Dec-08 31,944,000 11,374,000 20,570,000

31-Dec-07 28,857,000 10,406,000 18,451,000

Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss

11,671,000 8,231,000

11,774,000 350,000 8,446,000

11,199,000 7,252,000

Income from Continuing Operations Total Other Income/Expenses Net 289,000 Earnings Before Interest And Taxes 9,301,000 Interest Expense 355,000 Income Before Tax 8,946,000 Income Tax Expense 2,040,000 Minority Interest (82,000) Net Income From Continuing Ops 7,605,000

305,000 7,877,000 438,000 7,439,000 1,632,000 5,807,000

1,077,000 8,329,000 456,000 7,873,000 1,892,000 5,981,000

Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 6,824,000 $6,824,000 5,807,000 $5,807,000 5,981,000 $5,981,000

873.543.579.000 (12.000 8.000) $1.532.000 2.000 1.110.000 85.000 1.049.000 5.913.000 1.000 1.000 2.000 (227.916.000 2.000 2.000 $1.873.000 4.543.000 2.000 7.000 Interest Expense 84.590.000 2.000 1.079.169.000 1.000 4.780.000 2.000 Earnings Before Interest And Taxes 2.000 8.044.900.037.825.324.000 Non Recurring Others Total Operating Expenses Operating Income or Loss 1.000 - - - - 1.000 456.000 23.000 2.000 $1.000 5.049.000 Income from Continuing Operations Total Other Income/Expenses Net 92.000 2.000 2.000 Operating Expenses Research Development Selling General and Administrative 3.267.354.359.934.000) (47.000 2.000 Income Tax Expense 382.960.000 $2.863.000 .859.000) Net Income From Continuing Ops 2.000 Income Before Tax 1.728.Summer Internship Project 72 Past 4 quarters: PERIOD ENDING Total Revenue Cost of Revenue Gross Profit 31-Dec-09 2-Oct-09 3-Jul-09 3-Apr-09 7.000 Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 1.000 2.438.348.044.510.000 679.896.443.000 2.000 2.960.000) (11.000 2.815.716.000 97.000) 404.000 89.150.359.000 Minority Interest (35.000 20.000 523.651.

Summer Internship Project 73

Success factors:
Reaching out to the rural market

Coca-Cola is successful for many reasons, but one of them is the Atlanta-based megabrand's ability to identify untapped marketplaces and win over consumers not only by aggressively pursuing them, but also by wanting to know them. Now, Coke is reaching out to bottom-of-pyramid (BOP) consumers in India with Vitingo, a new drink aimed at low-income consumers. Yet Coke isn t alone in India, and for good reason. Statistics show that 40 million Indian families are moving from outright poverty to the BOP demographic every year. Remember, that s not 40 million people that are 40 million families. Each year, Both Coca-Cola and GSK

Summer Internship Project

know there is no greater brand advocate than a family member. Marketing has been an important success factor.

74

Coca-Cola is seen as one of the founding fathers of the modern day marketing model. They were among the pioneers of advertising techniques and styles used to capture an audience. They were also one of the first companies to offer a gimmick with their product, this being a mini yo-yo. It was around 1900 when Coca-Cola began presenting their signature drink as a delicious and refreshing formula. This slogan has been repeated for over the last 100 years selling Coke all over the world. Through its intense marketing campaigns, Coke has developed an image that is reflected in what we think of when we buy Coke and what we associate with drinking Coke. This image has been subconsciously installed in our brain by the advertising campaigns that show CocaCola associated with good times.

Summer Internship Project 75

The mantra to success is Innovate or Die.

Coca-Cola has been able to survive and grow in an everchanging market because of its ability to systematically innovate and deliver new products. In the late 90s the company, typically showing earnings growth of 15-20% per year, turned in three straight years of falling profits. It was apparent that the market was changing and in order to keep up with these changes, Coca-Cola had to move from a single core product to a total beverage company. This was a major change because their past success was base on having one successful core.

Recognizing that a single global strategy or single global campaign wouldn t work. locally relevant executions became an increasingly important element of supporting Coke s global brand strategy. 76 In 2001.Summer Internship Project 2001 Coke Marketing Strategy Coca-Cola CEO Douglas Daft set the direction for the next generation of success for his global brand with a Think local. The foundation of the new strategy grounded brand positioning and marketing communications in consumer insights. the degree of differentiation between consumer segments and their . acknowledging that urban versus rural India were two distinct markets on a variety of important dimensions. after almost a decade of lagging rival Pepsi in the region. The soft drink category s role in people s lives. Coke India re-examined its approach in an attempt to gain leadership in the Indian market and capitalize on significant growth potential. particularly in rural markets. act local mantra.

with higher category and brand development. gave Coke direction on the tradeoff between focus and breadth a brand needed in a given market and made clear that to succeed in either segment. focusing on differentiation through offering unique and compelling value. where both the soft drink category and individual brands were undeveloped. This lens. and the degree to which brands in the category projected different perceptions to consumers were among the many important differences between how urban and rural consumers approached the market for refreshment. informed by consumer insights. In Rural Markets. 77 . the task was to broaden the brand positioning while in Urban Markets. the task was to narrow the brand positioning.Summer Internship Project reasons for entering the category. unique marketing strategies were required in urban versus rural India.

Life ho to aisi. (life as it should be) was the successful and relevant tagline found in Coca-Cola s advertising to this audience. comprising the other 96% of the nation s population. celebrating the benefits of their increasing social and economic freedoms. This segment s primary need was . India B included small towns and rural areas. This segment sought social bonding as a need and responded to aspirational messages.Summer Internship Project BRAND LOCALIZATION STRATEGY: THE TWO INDIA S India A: ³Life ho to aisi´ 78 India A. India B: ³Thanda 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. the designation Coca-Cola gave to the market segment including metropolitan areas and large towns. represented 4% of the country s population.

to Rs.5. 100. smaller than the traditional 300ml bottle found in urban markets. Coke was perceived as a luxury that few could afford.Summer Internship Project out-of-home thirst-quenching and the soft drink category was undifferentiated in the minds of rural consumers. . 10 and an average day s wages around Rs. 79 In an effort to make the price point of Coke within reach of this high-potential market. Coca-Cola launched the Accessibility Campaign. and concurrently cutting the price in half. with an average Coke costing Rs. Additionally. introducing a new 200ml bottle.

Coke s advertising and promotion strategy pulled the marketing plan together using local language and idiomatic expressions. the phrase directly addressed the primary need of this segment for cold refreshment.000 in 2001 to 160. meaning cool/cold is also generic for cold beverages and gave Thanda Matlab Coca-Cola delicious multiple meanings. At the same time. Thanda. Coke invested in distribution infrastructure to effectively serve a disbursed population and doubled the number of retail outlets in rural areas from 80.Summer Internship Project 80 This pricing strategy closed the gap between Coke and basic refreshments like lemonade and tea. . Coca-Cola won Advertiser of the Year and Campaign of the Year in 2003. Literally translated to Coke means refreshment. As a result of the Thanda campaign.000 in 2003. increasing market penetration from 13 to 25%. making soft drinks truly accessible for the first time.

This market accounted for 80% of India s new Coke drinkers. the rural market was an attractive target and it delivered results. Driven by the launch of the new Rs.Summer Internship Project 81 Success Comprising 74% of the country's population. 30% of 2002 volume. 41% of its middle class. 5 product. Coke experienced 37% growth in 2003 in the rural areas versus the 24% growth seen in urban areas. and 58% of its disposable income. . per capita consumption doubled between2001-2003. and was expected to account for 50% of the company s sales in 2003.

and Coca-Cola India is reaping the rewards. especially in the country's highly promising rural markets. Much of last year's growth for Coca-Cola -. In the process.and its rival . executives had to recalibrate the old kinks in its supply chain and bust a few myths about winning over Indian consumers.Summer Internship Project The BIG turnaround After a series of missteps during recent years. its sales volume grew more than 30% and it turned a profit for the first time since it returned to the country in 1993 after a 16-year hiatus. 82 Now. the beverages of the US$31 billion multinational are back on the shopping lists of Indian consumers. says the company. At the end of last year. who was appointed the firm's Delhi-based president and CEO of Coca-Cola India and southwest Asia in 2005. Coca-Cola India has had to learn lessons the hard way. according to Atul Singh.

John Zhang. a Wharton marketing professor.Summer Internship Project PepsiCo -. That means getting its bottles of fizzy drinks to the right place at the right time at the right price -. but experts note that Coca-Cola's rural push helped it consolidate its overall market leadership. "Today's farmer could be tomorrow's city resident.came from urban and semi-urban markets. the tasks ahead for Singh and his team are clear.a tall order in a country with such a vast hinterland like India. you better capture that market quickly. Hot Markets The reality is that the consumers Singh covets most are in hard-to-reach rural India. 83 As in previous years." . he says." says Z. Cold Drinks. "Coca-Cola must realize that the future of its drink will be determined in the countryside because that is where the consumers are. One of the biggest challenges is introducing a greater number of people to consuming beverages in a ready-to-drink packaged form.

a country that Zhang has studied closely. India is a market that makes neither distribution nor inventory management easy. even established consumer-goods companies in India have covered only about a tenth of the country's 600. of course. As in China. not Coca-Cola's alone. Indeed. and PepsiCo's Pepsi." helping its own beverages gain a bigger share of China's soft drinks market than Coca-Cola's Sprite and Coke. chairman and managing director of Samsika Marketing Consultants. the dream of capturing rural consumers in India is." Zhang says. a brand marketing-services firm . knowing those people will become city residents eventually. Home-grown beverage company Wahaha uses "a guerilla marketing strategy to encircle the city from the countryside. But as CocaCola and its rivals know. according to Jagdeep Kapoor. which also has an enormous untapped rural consumer market. and is hugely diverse in terms of tastes and buying power.000 villages. "Wahaha also knows the rural markets are where Coke is weak.Summer Internship Project 84 It's a similar scenario in China.

Singh says. Depending on how you look at it. consumers -. "For the first three or four years [after its return. Coca-Cola] was grappling with whether it should focus on Thums Up or Coke. Part of that meant a greater focus on refrigeration. before Coca-Cola bought it in 1993. Thums Up. In India.urban or rural -want a "cold drink" and not just a "soft drink. it's either good news or bad news that "you have the whole rural market up for grabs. Kapoor in the past was head of marketing for a number of popular drinks." The key to the turnaround. In electricity-deficient areas. such as some . is that Coca-Cola India along with its bottlers ramped up its route-tomarket strategy. and refrigeration took a back seat.Summer Internship Project in Mumbai." says Kapoor." 85 Consumer-goods experts agree that one reason why Coca-Cola's India foray faltered after it re-entered the country was that it did not pay enough attention to refrigeration. including India's biggest cola brand. he adds.

tailored fulfillment. 86 Taking a New Route As for distribution. its goods are now sent first to a "hub. uneconomical vehicles are needed. while efficiency increases through more timely. Rather than transporting beverages directly from the bottling plants to retailers. it has trade agreements with local ice makers. Among the benefits. Coca-Cola India has done what other companies in the hinterland have done. . In other places. says CEO Singh.Summer Internship Project of the hinterland in Uttar Pradesh. it now provides shops with coolers that operate with brine solution so its products can stay chilled up to 12 hours without electricity." and are then parceled out to nearby "spoke" centers when orders need filling. that approach reduces costs because fewer long-haul journeys in large. and moved from a centralized distribution model to a hub-and-spoke approach.

it was common practice for . an advertising agency in Mumbai that produces urban and rural market indices." The larger areas that companies have to cover in rural India disproportionately increase logistics costs. adds that although rural India's population is three times larger than in urban areas.Summer Internship Project Gowri Arun. she says. "the market is not three times the size and is not homogenous. 87 It wasn't just distribution and refrigeration issues that caused Coca-Cola to stumble in India." says Kapoor. The company also erred in adopting the low price-point strategy that many other foreign consumer-goods companies were using at the time to sell their products in rural India. principal consultant at RK Swamy BBDO." Kapoor points out that between the time that Coke left India (because of disagreements over government regulations) and its reentry. "There cannot be a bigger myth. "People think Indian consumers want low-priced products. They want good-quality products at a reasonable price.

88 The High Cost of a Low Price Yet about seven years ago. "The real thought behind the 200-ml bottle is to get people in rural India used to this packaged beverage.Summer Internship Project rural consumers to pay one rupee more for packaged beverages to cover the cost of keeping them chilled." according to Arun of RK Swamy BBDO. Rs. 5 is a "psychological price point. "How can anyone say they are price-sensitive consumers?" he asks. Coca-Cola claimed the low price spurred sales. Today. a Coca-Cola spokesperson says. A price greater than Rs. 10 note. 5 (11 cents)." At the time." . Coca-Cola set out to woo rural consumers by halving the price of a 200-milliliter (seven-ounce) bottle to Rs. 5 means a consumer has to "break a Rs.

8. though the rivalry remains as intense as ever: PepsiCo India grew its beverage business more than 32% in 2009. he says. and let prices for their 200-ml sodas rise up to around Rs. a price war erupted as rival PepsiCo matched the Rs. was that Coca-Cola advertised the lower price on billboards and in print media.Summer Internship Project But among the problems. according to Kapoor. however. its highest volume growth in recent years. who has analyzed priced wars in China extensively. 5 price. Both firms have since dropped the strategy. says the Rs. who wanted the drink for Rs. Despite what many Western . according to company marketing. Indian retailers found themselves arguing with customers. 5 experience shouldn't make Coca-Cola or other companies fear entering into price wars in the future. 89 Meanwhile. Yet Zhang. 5 and were unwilling to pay the extra rupee for refrigeration. making it the fastest-growing beverage company in the country for the second consecutive year.

We are now looking at alternative packaging and how to organize distribution. arguing that it is consistent with their drinking habits. "The price barrier has definitely been a problem in rural India. there seems to be no easy way for Coca-Cola to woo rural consumers with pricing strategies. he says. 90 In any case. ." Nabankur Gupta helped develop the low-priced Videocon brand of televisions and other white goods in India before becoming CEO of Nobby Brand Architects. a price war can be an effective business strategy but must be managed well and works best in fragmented markets in which consumers are price sensitive." concedes a spokesperson for Coca-Cola India. and no mechanism can provide such drinks at a cheap cost due to freight charges. "Soft drinks that come in a glass bottle have to be returned to bottling plants.Summer Internship Project companies believe. a brand consulting firm in Mumbai. He argues in favor of going to a 150-ml bottle to woo rural Indian consumers.

Another one is the power of a brand's image. which might draw consumers to buy one product while making them shun another. but tea or soft drinks are served in small glasses. Indian consumers are "emotional.Summer Internship Project Lassi. is usually consumed in 300-ml or 350-ml tumblers. India's popular yogurt drink." according to Kapoor. 91 Of Drinks and Dreams The psychological impact of pricing is just one part of the bigger basket of intangible considerations that MNCs often struggle to manage in rural India. he says. He notes that reducing sizes has worked well for shampoo manufacturers supplying India's rural and semi-urban markets with small sachet packs." Foreign companies should be particularly mindful of helping their brands appeal to the lifestyle aspirations of . "Only 50% of what is consumed is what goes in the mouth and in the stomach. the other 50% goes in the mind and heart.

according to Gupta.the slums of Dharavi." Thanks to a growing number of Indians with access to television. it is a question of reach. "Rural customers aspire to the urban consumers' lifestyle." 92 What's more. "rural" is a state of mind that can exist in an urban metropolis. he says marketers at companies like Coca-Cola need to increase their investments around educating rural consumers. the rural population is already sensitive to the idea that they are not as good as city residents in terms of quality of life." he notes.Summer Internship Project up-and-coming Indians. You don't want to treat them like country bumpkins. "In urban India. For a consumer in the "ghetto market" of Dharavi. Armed with that knowledge. a cold cola is an "aspiration" and a "status symbol that tells his neighbor that he has arrived. "In China. it . says Wharton's Zhang." adds Kapoor. "One of the biggest rural markets in India is Mumbai -. But in rural India." he says. "you can see the consumer experience of your urban cousins and you want the same experience.

expectations need to be managed. The aim is to train 100. says that while education is important -. Ludhiana. managing director and CEO at Future Brands." 93 At Coca-Cola." he says. according to a Coca-Cola spokesperson. how [to drink it] in a macho manner by holding your head up -you cannot take it for granted. Coca-Cola's University on Wheels launched a nationwide training program called Parivartan on 20-seater buses for momand-pop retailers.000 retailers in the next two years. In late 2008. "You have to tell them what a cold drink is. with courses on such topics as how to display products and improve inventory management.000 retailers in cities including Agra. . But Santosh Desai. the program has covered more than 30. So far. how is it opened.Summer Internship Project is about reach and preach. education initiatives have been more focused on the retailers selling their sodas than on the customers drinking them. Chandigarh and Lucknow. a brand consulting company in New Delhi.particularly that of retailers -.

" . and as a result Thums Up gave PepsiCo a very hard time when PepsiCo entered the market. with Coke and Pepsi following. but in terms of market building. "Training the retailer is a great idea." he says.Summer Internship Project "Symbolically. One involves its failed attempt to let the popular home-grown Thums Up brand fade away in the mid-1990s so that its own Coke brand could gain more market share. but given the scale of India and its number of villages. it merely scratches the surface. "Coca-Cola bought Thums Up when it ruled the market." 94 Neglecting Thums Up There are thornier issues involving brand management that Coca-Cola India has had to confront. Coke neglected the Thums Up brand. it is both significant and valuable in intent. it will be an extremely long time before you get any significant scale. Then it started paying attention and Thums Up is still number one in India." says Kapoor. "Initially.

Summer Internship Project As Desai of Future Brands notes: "Thums Up is a brand that refuses to die . There are huge pockets of enthusiasm for it across the country. In India. it continues to battle (along with Pepsi) allegations that it has excessive pesticide content in its soft drinks. and it tends to appeal to rural audiences more than other brands. .. pricing and the like. it has a good rural profile. Coca-Cola India now knows that issues like these can make or break even the hardiest of emerging market strategies.a charge it denies." 95 With or without Thums Up. Where it is strong. being the most visible soft drink brand means Coca-Cola also attracts unwelcome attention. Just as with distribution.. although Coca-Cola never intended to let the brand live. when it faced a US$47 million fine in the southern state of Kerala for alleged groundwater pollution -. and that it depletes and contaminates groundwater resources. Coca-Cola made headlines yet again in March.

RED ensures the proper display. CCI adopted Right Execution Daily (RED) strategy for effective execution of its distribution mainly in urban areas. With the success of RED in urban markets.Summer Internship Project Innovative Distribution Strategies 'RED' Approach CCI built a distribution network in combination with its bottling partners and contract manufacturers. it modified its distribution chains and adopted the threetier hub and spoke distribution model. However. 96 . availability and activation of company s products in the retail stores. it distributes products directly from bottling plants to retailers. Besides its distribution network. In urban areas. to penetrate into the rural areas and increase its sales. the company plans to implement it in rural areas. which boosted the sales of the company. owing to lack of proper infrastructure and difficult access to the remote villages.

It can also be used to remove doors. It is called Coca Cola because the original ingredients consisted of Coca leaves and Kola seeds. Coca-Cola helped create the modern image of Santa Claus Coca-Cola was the first soft drink to be consumed in space. That happened in 1985. Wine was added instead of sugar. If you are unfortunate enough to get gum in your hair rinse it with coca-cola and the gum will come out easily! Coke has traces of cocaine and the original version contained alcohol! 97 .Summer Internship Project Did you know these facts about Coca Cola? Coke was invented by a pharmacist named John Pemberton as a medicine for headaches. You can even use Coke as a cleaning liquid on rusty pans and dirty toilets.

Summer Internship Project SWOT Analysis Strengths One of the worlds leading brand. Excellent revenue growth. Imports. Large scale of operations. 98 Weaknesses Negative Publicity. Low export levels Opportunities Growing population. Slowdown in Rural Market. Growing bottled market. Export Potential. Threats Intense competition. . Higher Income among people.

Coca Cola owns 4 of the top 5 brands in the worldCoca Cola.governmental organization in New Delhi. It is well ahead of its fierce competitor Pepsi in terms of brand recognition. Diet Coke. Being the largest manufacturer. Sprite and Fanta. said aerated waters produced by soft drinks manufacturers in India. including multinational giants PepsiCo and Coca-Cola. DDT. The company has a leading brand value and a strong brand portfolio. 99 Weaknesses The brands produced by the company are brands produced world wide thereby making the export levels very low. Malathion and chlorpyrifos. contained toxins including lindane. Being a very recognized global brand. Its products are sold in more than 200 countries. Such strong brands have allowed the company to vary with their products such as Vanilla Coke and Coke with Lemon to name a few. the company can penetrate new markets and consolidate existing ones. distributor and marketer of nonalcoholic beverages in the world. the company s biggest strength is probably its large scale of operations. In India.Summer Internship Project Strengths Coca Cola has strong brand recognition across the globe. In 2003.pesticides that can contribute to cancer and a breakdown of the immune system. a non. the Centre for Science and Environment (CSE). . there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola.

The Company can come up with new products which are not manufactured abroad. Coca-Cola India claims a 58 per cent share of the soft drinks market.000 new outlets in the first two months of this year. like Maaza etc and export them to foreign nations. Other products account for 16 per cent market share. chiefly led by Limca. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market. Opportunities The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer.Summer Internship Project 100 Therefore. The company appointed 50. The Company s operations are carried out on a small scale and due to Government restrictions and red-tapism . Coca-Cola amounts for 74% of the beverage market. as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3. In Bangalore.500 new villages. . this includes a 42 per cent share of the cola market. people abroad. are apprehensive about Coca-Cola products from India. the Company finds it very difficult to invest in technological advancements and achieve economies of scale.

power problems. As India is developing at a fast pace. seasonal consumption linked to harvests and festivals and special occasions. and inaccessibility to conventional advertising media. large number of daily wage earners. 101 Threats There is a substitute threat in the form of Pepsi. All these problems might lead to a slowdown in the demand for the company s products. the export levels have gone high. Coconut Water are also considerable threats to Coca Cola because they are more healthier options when compared to Coca Cola s products. Unlike olden times. people now have the power of buying goods of their choice without having to worry much about the flow of their income. the per capita income has increased over the years and a majority of the people are educated. it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company. The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income. . If consumers shift onto imported beverages rather than have beverages manufactured within the country. People understand trade to a large extent and the demand for foreign goods has increased over the years. poor roads. Iced Tea. 7-UP to name a few. Mirinda.Summer Internship Project Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. acute dependence on the vagaries of the monsoon. The beverage industry can take advantage of such a situation and enhance their sales.

How often do you drink soft drinks? A. Do you like soft drinks? A. Where do you mostly drink Soft Drinks? A. Rarely C. No 2. Pub E. Home B. Yes B. Always 3. Often D. Party D. Work C. Never B. Other .Summer Internship Project 102 Questionnaire 1.

Coke or Pepsi? A. Coke. 8 out of 10 people prefer Coke and out of these 8. I want Coke and I say Coke. Lime C. I want Pepsi and I say Pepsi. Which type of Soft Drink do you prefer? A. around 60% of people do like soft drinks but mostly under 30 years of age. people above the age of 30 don t prefer drinking cola. . Orange B. C. I want Pepsi. but I say Coke. Pepsi 6. People prefer to drink soft drinks at home or a party rather than work or a pub. Coke B.Summer Internship Project 103 4. 80% refer to Pepsi even though they have a Coke product in mind. Which brand do you prefer. Once again. D. Which brand always comes to your mind when you think of having a soft drink? A. but I say Pepsi. Cola 5. B. they rather prefer lemon or orange flavors. Of the above noted questions.

Internet: www. Vishal Gupta .google.General Sales Manager.com www.com Magazines: Forbes India Today Thank You.scribd.coca-colaindia.Summer Internship Project 104 Bibliography Mr.com www. who helped me a lot throughout this project. KEVIN KOHLI BBA-III SEMESTER .

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