COCA-COLA INDIA

MORE THAN JUST SUGAR AND FIZZ

Submitted to

Prof. Sanket Vatavwala

Submitted by – Group 4

HIMADRI JANA - MBA/07/077

PRANJAL YADAV - MBA/07/035
SARMA SIDDHARTH M - MBA/07/104
ANSH LAKHMANI - MBA/07/127
SUNDERJITH K - MBA/07/172
KAIRAM SAI KOUSHIK-MBA/07/204
Case Background:

• James Quincey, CEO travelled to India in August 2017 to open the company's Indian
office.
• By 2020, strive to overtake the second-largest market.
• By 2025 or 2030, the industry will be divided between carbonated and non-carbonated
drinks (selling less of the company's signature product while also pursuing new markets).
• Reduce the amount of sugar in products.
• Try introducing water, dairy products, and beverages with juice as the base.
• straying off course and slamming the Indian market with the launch of other products while
positioning Coca-Cola as a "total beverage company."

Scenario Analysis:
• The market for soft drinks in India, currently valued at 19 billion USD, is anticipated to
triple in size by 2020.
• Hot beverages, namely tea and coffee, continue to dominate the market for soft drinks.
• Despite a 4.7% market share decline, Cola-Cola is still the market leader for soft drinks,
considerably ahead of its rivals.
• Indian consumers' changing tastes led them to demand healthier alternatives to sugary
carbonated drinks.

Competitors Analysis:
Particular Coca-Cola Pepsi Co Parle Dabur
Market Share
(2020) 32.9 21.8 4.8 1.2
Product Portfolio Mainly beverages Consumer Biscuits, Sweet Healthcare,
snacks. Confectionary, Health
Fitness beverages, supplements,
food, consumer snacks beverages, home
beverages care etc
Packages Water Kinley and Smart Aquafina Bisleri NA
Segment water
Tea-Coffee Georgia, Costa Lipton, NA NA
Segment Fuze, Honest Starbucks
Tea, Gold peak bottle, Brisk
Tea tea, Pepsi
Café Cola
with coffee
Net Sales (last Last Quarter Last Last Quarter online Last Quarter: Net
Quarter) Beverage: 28% Quarter sales: Increased by Profit Falls-6% to
decline beverage: 300% (Parle Agro) 314 crores
24% Net Profit of:1.35
decline crore
Snack:117%
increase
Key issues with Coca-Cola:
• Market share for Coca-Cola India dropped from 37.6% in 2012 to 32.9% in 2016.
• Juice and fruit drinks like Real, Slice, Tropicana, Rooh Afza, and Tang reportedly outsold
Pepsi and Coke in India's top 5 best-selling brand rankings in 2016.
• competition from local beverage manufacturers like Campa Cola, Xalta, and Jayanti
Beverages.
• Juice sales were growing because of the introduction of local tastes like Jaljeera and
Aampana as well as rising customer health awareness.

Optimum Alternatives:
• Coca-Cola India introduced its strong intention to distance itself from its main rivals by
concentrating on healthier beverages rather than sugar-carbonated drinks.
• Reduce the amount of sugar in beverages like Coca-Cola Zero.
• Drinks in smaller sizes to enable lower sugar content.
• Increase the variety of products with added minerals.
• Introduce mineral water and beverages made from juice.
• A small entry in the diary section.

Decision Criteria:

• A survey found that 46% of Indians expected their food to be healthier by 2025.
• By 2025, there will be a 55% increase in internet usage, and social media will be a viable
tool for strategic marketing.
• Emerge as a "Total Beverage Company or One Stop Shop" for all beverage requirements.

Action Plan:
To ensure sustainable growth, Coca-Cola ventured into new segment

1) Vio (Flavored milk beverage)

2) Zico ( Coconut Water)

3) Fuze tea
Will Invest $1.653 billon between 2017 and 2022 to foray into

• Enhancing into local fruit variants

• Adding juice to current portfolio
• Launching new range of products
• Exporting Indian fruits to global systems
• They Created value in rural India through Availability, Affordability and Acceptability