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ORGANIZATION STUDY

REPORT
ON

COCA-COLA
Organization Study Report on Coca - Cola

INTRODUCTION

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Organization Study Report on Coca - Cola

1. INTRODUCTION TO COCA-COLA

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400
beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,
distributors, fountain retailers and fountain wholesalers. The Company’s beverage products
comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-
drink powder products. In addition to this, it also produces and markets sports drinks, tea and
coffee. The Coca- Cola Company began building its global network in the 1920s. Now
operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system
has successfully applied a simple formula on a global scale: “Provide a moment of refreshment
for a small amount of money- a billion times a day.”

The Company aims at increasing shareowner value over time. It accomplishes this by working
with its business partners to deliver satisfaction and value to consumers through a worldwide
system of superior brands and services, thus increasing brand equity on a global basis. They
aim at managing their business well with people who are strongly committed to the Company
values and culture and providing an appropriately controlled environment, to meet business
goals and objectives. The associates of this Company jointly take responsibility to ensure
compliance with the framework of policies and protect the Company’s assets and resources
whilst limiting business risks.

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2. OBJECTIVES OF THE STUDY


 To understand about the Company Profile of Coca – Cola India.
 To study the various brands of Coca – Cola India.
 To study the Marketing Mix of Coca – Cola.
 To understand the SWOT of Coca - Cola

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INDUSTRY PROFILE

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3. INDUSTRY PROFILE
A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are
products that have a quick turnover and relatively low cost. Consumers generally put less
thought into the purchase of FMCG than they do for other products.

The Indian FMCG industry witnessed significant changes through the 1990s. Many players had
been facing severe problems on account of increased competition from small and regional
players and from slow growth across its various product categories. As a result, most of the
companies were forced to revamp their product, marketing, distribution and customer service
strategies to strengthen their position in the market.

By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly.
With the liberalization and growth of the Indian economy, the Indian customer witnessed an
increasing exposure to new domestic and foreign products through different media, such as
television and the Internet. Apart from this, social changes such as increase in the number of
nuclear families and the growing number of working couples resulting in increased spending
power also contributed to the increase in the Indian consumers' personal consumption. The
realization of the customer's growing awareness and the need to meet changing requirements
and preferences on account of changing lifestyles required the FMCG producing companies to
formulate customer-centric strategies. These changes had a positive impact, leading to the rapid
growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and
qualified manpower also boosted the growth of the organized retailing sector.

HLL led the way in revolutionizing the product, market, distribution and service formats of the
FMCG industry by focusing on rural markets, direct distribution, creating new product,
distribution and service formats. The FMCG sector also received a boost by government led
initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the
country that witnessed firms moving away from outsourcing to manufacturing by investing in
the zones.
Unlike other economy sectors, FMCG share float in a steady manner irrespective of global
market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs.
The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian
Economy and is worth Rs.93000 cr. The main contributor, making up 32% of the sector, is the

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South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth
Rs.143000 cr. The sector being one of the biggest sectors of the Indian Economy provides up
to 4 million jobs.

A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA


In India, beverages form an important part of the lives of people. It is an industry, in which the
players constantly innovate, in order to come up with better products to gain more consumers
and satisfy the existing consumers.

BEVERAGES

NON-
ALCOHOLIC ALCOHOLIC

NON-
CARBONATED CARBONATED

COLA NON-COLA NON-COLA

BEVERAGES IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:

 Alcoholic, non-alcoholic and sports beverages.


 Natural and Synthetic beverages.
 In-home consumption and out of home on premises consumption.
 Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.
 Segmentation based on the amount of consumption i.e. high levels of consumption
and low levels of consumption.

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If the behavioural patterns of consumers in India are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to leverage the beverage industry, it is
important to address this issue so as to encourage regular consumption as well as and to make
the industry more affordable.

Four strong strategic elements to increase consumption of the products of the beverage industry
in India are:

 The quality and the consistency of beverages needs to be enhanced so that consumers
are satisfied and they enjoy consuming beverages.
 The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.
 Consumer education is a must to bring out benefits of beverage consumption whether
in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige
relevant to the category.
 Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.
 The beverage market has still to achieve greater penetration and also a wider spread
of distribution. It is important to look at the entire beverage market, as a big
opportunity, for brand and sales growth in turn to add up to the overall growth of the
food and beverage industry in the economy.

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COMPANY PROFILE

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4. COMPANY PROFILE

4.1 MISSION:

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions.

 To refresh the world...


 To inspire moments of optimism and happiness...
 To create value and make a difference.

4.2 VISION:
Our vision serves as the framework for our Roadmap and guides every aspect of our business
by describing what we need to accomplish in order to continue achieving sustainable, quality
growth.
 People: Be a great place to work where people are inspired to be the best they can be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.
 Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
 Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.

 Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.

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4.3 LIVE OUR VALUES:


Our values serve as a compass for our actions and describe how we behave in the world.
 Leadership: The courage to shape a better future.
 Collaboration: Leverage collective genius.
 Integrity: Be real.
 Accountability: If it is to be, it's up to me.
 Passion: Committed in heart and mind.
 Diversity: As inclusive as our brands.
 Quality: What we do, we do well.

4.4 HISTORY OF COCA-COLA

The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a
drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called
Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin
Mariani, a European cocawine.

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In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded
by developing Coca-Cola, essentially a non-alcoholic version of French Wine Coca. The first
sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a
patent medicine for five cents a glass at soda fountains, which were popular in the United States
at the time due to the belief that carbonated water was good for the health.[9] Pemberton claimed
Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia,
headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of
the same year in the Atlanta Journal.

By 1888, three versions of Coca-Cola — sold by three separate businesses — were on the
market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated
it as the Coca Cola Company in 1888.

John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two
manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his
beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out
to establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out of
the business. Candler purchased exclusive rights to the formula from John Pemberton, Margaret
Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim her signature
on the bill of sale had been forged, and subsequent analysis has indicated John Pemberton's
signature was most likely a forgery as well.

In 1892 Candler incorporated a second company, The Coca-Cola Company (the current
corporation), and in 1910 Candler had the earliest records of the company burned, further
obscuring its legal origins. By the time of its 50th anniversary, the drink had reached the status
of a national icon in the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen, after
the company made minor changes in the sourcing of some ingredients.

Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall
advertisement was painted in the same year as well in Cartersville, Georgia. Cans of Coke first
appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the
Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original
bottles were Biedenharn bottles, very different from the much later hobble-skirt design that is
now so familiar. Asa Candler was tentative about bottling the drink, but two entrepreneurs from

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Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and
were so persuasive that Candler signed a contract giving them control of the procedure for only
one dollar. Candler never collected his dollar, but in 1899 Chattanooga became the site of the
first Coca-Cola bottling company. The loosely termed contract proved to be problematic for the
company for decades to come. Legal matters were not helped by the decision of the bottlers to
subcontract to other companies, effectively becoming parent bottlers. Coke concentrate, or
Coke syrup, was and is sold separately at pharmacies in small quantities, as an over-the-counter
remedy for nausea or mildly upset stomach.

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the
drink with "New Coke". Follow-up taste tests revealed that most consumers preferred the taste
of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared for the
public's nostalgia for the old drink, leading to a backlash. The company gave in to protests and
returned to a variation of the old formula, under the name Coca-Cola Classic on July 10, 1985.

On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005
they planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose,
the same sweetener currently used in Pepsi One. On March 21, 2005, it announced another diet
product, Coca-Cola Zero, sweetened partly with a blend of aspartame and acesulfame
potassium. In 2007, Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins B6,
B12, magnesium, niacin, and zinc, marketed as "Diet Coke Plus”. On July 5, 2005, it was
revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab
League boycotted the company in 1968.

In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola."
The word "Classic" was truncated because "New Coke" was no longer in production,
eliminating the need to differentiate between the two. The formula remained unchanged.

In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce
bottles sold in parts of the southeastern United States. The change is part of a larger strategy to
rejuvenate the product's image. In November 2009, due to a dispute over wholesale prices of
Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke.

4.5 GLOBAL MARKET SHARE OF COCA-COLA

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In 2009, the company generated revenues of $31 billion with $6.8 billion net income. An
increased consumer preference for healthier drinks has resulted in slowing growth rates for sales
of carbonated soft drinks (abbreviated as CSD), which constitutes 78% of KO’s sales. KO’s
profits are also vulnerable to the volatile costs for the raw materials used to make drinks - such
as the corn syrup used as a sweetener, the aluminium used in cans, and the plastic used in
bottles. Furthermore, slowing consumer spending in Coke's large North American market
compounds the challenge of increasing costs and a weak economic environment. Finally, Coca-
Cola earns approximately 75% of revenue from international sales, exposing it to currency
fluctuations, which are particularly adverse with a stronger U.S. Dollar (USD).

KO has also responded to consumers’ changing tastes with new, non-CSD product launches
and acquisitions such as that of Glaceau in 2007. Strong international growth has also more
than offset a weak domestic market.

On February 25, Coca-Cola Company announced its plan to buy Coca-Cola Enterprises (CCE)
for $12.3 million.[7] Since spinning of Coca-Cola Enterprises (CCE) 24 years ago, the soft drink
market has changed dramatically with consumers buying fewer soft drinks and more non-
carbonated beverages, such as Powerade and Dasani water. Under the new deal, Coca-Cola
Company will take control of the bottler's North America operations, giving the company
control over 90% of the total North America volume. In return, Coca-Cola Enterprises will take
over Coke's bottling operations in Norway and Sweden, becoming a European-focused
producer and distributor.

In March 2010, Coca-Cola Company entered into discussions to buy the Russian juice
company, OAO Nidan Juices. The company is 75% owned by a private equity firm in London
and 25% by its Russian founders and controls 14.5% of the Russian juice market. If successful,
the purchase would add to Coca-Cola's 20.5% market share, passing Pepsi's 30% market share.
The Russian juice market is estimated to be $3.2 billion dollars, and estimates of Nidan's
purchase price are between $560-$620 million.

In April 2010, Coca-Cola Company purchased a majority share of Innocent, the British fruit
smoothie maker. Last year the company bought an 18% share of the company for more than
$45 million, and recent purchases of additional shares increased Coke's stake to 58%.

In June 2010, Coca-Cola Company agreed to pay Dr Pepper Snapple Group (DPS) $715 million
for the continued right to sell their products following the company's acquisition of Coca-Cola
Enterprises (CCE). The deal covers the next 20 years with an option to renew for an additional
20 years.

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4.6 COCA - COLA INDIA

Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced to close
down its operation by a socialist government in the drive for self-sufficiency. After 16 years of
absence, coca cola returned to India and witnessed a different culture and economic platform.
During their absence, Parle brothers introduced a new type of cola called THUMS UP. Along
with, they also formulated a lemon flavoured drink, LIMCA, and mango flavoured, MAAZA.
In 1993, coca cola bought the whole Parle Brother operation, in a hope to beat the main
competitor (Pepsi). They presumed that with the tried and tested products of Parle they will be
able to regain their throne in the Indian soft drink market. Pepsi having a 6 year head start
helped revive the demand for global cola but it was not easy for the soft drink giant (coca cola)
to return to India. Pepsi put more focus on the youth of the country in their advertisements but
coca cola tried influencing Indians with the ‘American’ way of life, which turned out to be a
mistake.

Coca-Cola invested heavily in India for the first five years, which got them credit of being one
of the biggest investor in the country; however, their sales figures were not so impressive.
Hence, they had to re-think their market strategies. Coca-Cola learned from Hindustan Lever

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that reducing their will result in more turnover, hence leading to profit. They launched an
extensive market research in India. They ascertained that in India 3 As must be applied;
Affordability, Availability and Acceptability. Coca-Cola learnt that they were competing with
local drinks such as “Nimbu Pani”, “Narial Pani”, “Lassi” etc. and reached to a conclusion that
competitive pricing was unavoidable. Since then they introduced a 200 ml glass bottle for Rs.5.

Further, they had different advertising campaigns for different regions of the country. In the
southern part, their strategy was to make Bollywood or Tamil stars to endorse their products.
In various regions they tried portraying coca cola products with different regional food
products. One of the most famous ad campaigns in India was ‘Thanda Matlab Coca-Cola’; they
featured the same quote with different regional entities.

Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i.e.
60% in Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33% in Packaged water
Segment, compared to its arch rival, Pepsi. Diversifying their product range and having a
competitive pricing policy, they have regained their throne. With virtually all the goods and
services required to produce and market Coca-Cola being made in India, the business system
of the Company directly employs approximately 6,000 people, and indirectly creates
employment for more than 125,000 people in related industries through its vast procurement,
supply, and distribution System.

The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with
another 25 being owned by franchisees. That apart, a network of 21 contract packers
manufactures a range of products for the Company.

On the distribution front, 10-tonne trucks – open bay three-wheelers 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.

4.7 PRODUCTS OF COCA-COLA INDIA

COCA-COLA

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In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated its
departure. Coca-Cola made its return to the country in 1993 and made significant investments
to ensure that the beverage is available to more and more people, even in remote and
inaccessible parts of the nation.

Over the past fourteen years has enthralled consumers in India by connecting with passions of
India – Cricket, movies, music & food. Coca-Cola’s advertising campaigns “Jo Chaho Ho
Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary. In
2002.Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky
rocketed the brand to make it India’s favourite soft drink brand.

GLASS PET CAN FOUNTAIN

200ml,300ml, 500ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES


1000ml 2.25L, 500ml, 100ml

LIMCA:-

Limca was introduced in 1971 in India. Limca has


remained unchallenged as the No.1 sparkling drink
in the cloudy lemon segment. The success formula
is the sharp fizz and lemoni bite combined with the
single minded proposition of the brand as the
provider of “Freshness”.

Limca can cast a tangy refreshing spell on anyone,


anywhere. Derived from “Nimbu” + “Jaise” hence
Lime Sa, Limca has lived up to its promises of
refreshment and has been the original thirst choice
of millions of customers for over 3 decades.

GLASS PET CAN FOUNTAIN

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200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES


500ml, 1000ml 2.25L, 500ml, 100ml

THUMS UP:-

Thums up is a leading sparkling soft drink and most trusted brand in India. Originally
introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up is
known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude. This
brand clearly seeks to separate the men from the boys.

GLASS PET CAN FOUNTAIN

200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES


500ml, 1000ml 2.25L, 500ml, 100ml

SPRITE:-

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Sprite a global leader in the lemon lime category is the second largest sparkling beverage brand
in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a true teen
icon.

RGB PET CAN FOUNTAIN

200ml, 300ml 500ml, 600ml, 330 ml VARIOUS SIZES


1250ml, 1500ml,
2000ml, 2250ml

FANTA:-

Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong
market place and is identifies as “The Fun Catalyst”. Perceived as a fun youth brand, Fanta
stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings but
also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is
associated with happy, cheerful and special times with friends.

GLASS PET CAN FOUNTAIN

200ml, 300ml 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES


2.25L, 500ml, 100ml

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MINUTE MAID PULPY ORANGE:-

The history of the Minute Maid brand goes as far back as 1945 when the Florida Food
Corporation developed orange juice powder. The company developed a process that eliminated
80% of the water in the orange juice, forming a frozen concentrate that when reconstitute
created orange juice. They branded it Minute Maid a name connoting the convenience and the
ease of preparation. Minute Maid thus moved from a powdered concentrate to the first ever
orange juice from concentrate.

The launch of Minute Maid in India (started with the south of the country) is aimed to further
extend the leadership of Coca-Cola in India in the juice drink category.

Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25 litres.

MAAZA:-

Maaza was introduced in late 1970’s. Maaza has today come to symbolise the very spirit of
mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza is
the mango lover’s first choice.

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RGB PET POCKET MAAZA

200ml, 250ml 250ml, 600ml, 1.2L 200ml

KINLEY:-

The importance of water can never be understated, Particularly in a nation such as India where
water governs the lives of the millions, be it as a part of everyday ritual or as the monsoon
which gives life to the sub continent. Kinley water comes with the assurance of safety from the
Coca-Cola Company.

Available in PET 500ml and 1000ml.

GEORGIA GOLD COFFEE:-

Georgia coffee was introduced in India in 2004. The Georgia gold range of Tea and coffee
beverages is the perfect solution for office and restaurant needs. Today Georgia coffee is
available at Quick-Service Restaurants, Airports, Cinemas and in Corporates across all major
metros in India.

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HOT BEVERAGES Espresso, Americano, Cappuccino, Caffe Latte, Mochaccino, Hot


Chocolate, Cardamon Tea.
COLD BEVERAGES Ice Teas, Cold Coffee.

4.8 MARKETING MIX OF COCA - COLA INDIA

 PRODUCT:-

Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola, Fanta, Sprite,
Thums Up, Maaza, Minute Maid and Georgia Gold. Bottled water was another area where
Coca-Cola identified major opportunities. In 2002, Packaged drinking water in India was a Rs
1,000 cr industry and growing by 40% every year. PDW was a low margin – high volume
business, but it was an attractive proposition for bottlers as it increased plant utilization rates.
In this market Coke’s Kinley was pitched against Ramesh Chauhan’s Bisleri and Pepsi’s
Aquafina. The product not only faced intense competition but also was difficult to differentiate.
Coke positioned Kinley as natural water with the tag line “Bhoond Bhoond Mein Vishwas”
(Trust in each drop of water).

In early 1999, the parent company acquired Cadbury Schweppes. As a result 12 more bottlers
were brought into CCI’s fold. This acquisition added Crush, Canada Dry and Sport Cola to
CCI’s product line. This meant CCI had three orange, clear lime and cola drinks each in its
portfolio.

 PRICE:-

Coke learnt with experience that price was a strategic weapon in an emerging market like India.
An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond the reach
of many Indian customers. In 2000, CCI conducted a yearlong experiment in coastal Andhra
Pradesh by introducing a 200ml bottle at Rs 7. The volumes went up by 30% demonstrating the
importance of consumer affordability. So the 200ml pack priced at Rs 5 was rolled out
countrywide in January 2003. The advertising Campaign highlighted the affordability and
Indian image.

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To make it affordable, Coke introduced Kinley in 200ml pouches for Re. 1 in selected places
in Ahmadabad and 200ml water cups in Maharashtra, priced at Rs 3 per cup in testing marketing
exercise conducted in mid – 2002. In 2002 Kinley with 35% market share had become the
leader in the retail PDW segment and was contributing 20% of CCI’s revenues.

 PLACE:-

Coke pushed down responsibilities from corporate headquarters to the local business units. The
aim was to effectively align CCI's corporate resources, support systems and culture to leverage
the local capabilities. CCI's operations had been divided into North, Central and Southern
regions. Each region had a president at the top, with divisions comprising marketing, finance,
human resources and bottling operations. The heads of the divisions reported to the CEO.
Bottling operations were divided into four companies directed by the bottling head from
headquarters. Under the new plan, CCI shifted to a six region profit center set up where product
customization and packaging, marketing and brand building were taken up locally. A Regional
General Manager (RGM) headed each region with the regional functional heads reporting to
him. All the RGMs reported to VP (Operations, who in turn reported to CEO. The four bottling
operations, with 37 bottling plants, were merged into Hindustan Coca-Cola Beverages (HCCB).
Each of the six regions had on an average six bottling plants. Each plant was headed by an Area
General Manager (AGM) and held profit center responsibility for a business territory. He
reported to the RGM as well as the head of bottling at the headquarters.

 PROMOTION:-

In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The marketing
campaign positioned Coca-Cola as an international brand and did not emphasize local
association. Coke, as a deliberate strategy, decided not to spend heavily on promoting Thums
Up. Indeed the marketing spend on Thums Up between 1993 and 1996 was almost negligible.
The overall marketing effort was also not focused as CCI changed the head of marketing three
times during the period. Thumps Up remained neglected. Inadequate marketing support for
other Parle brands also led to their declining market shares.

The bottlers taken over by Coke also had problems adjusting to a new work culture. They argued
that CCI's lack of interest in promoting Thumps Up was resulting in falling sales and asked CCI

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to take corrective action.

Coke is primarily targeted at young individuals over the age of twenty-five. This can be seen
by Coca-Cola’s advertising campaigns, which are aimed towards the young, by featuring well
known personalities popular to this age group. During 90'ies Coke's promotion efforts did not
seem to be effective. They were focused on mega events like the 1996 Cricket World Cup held
in India. CCI's World Cup Cricket campaign was overshadowed by Pepsi's "Nothing official
about it" campaign. Major analysts were surprised that Thumps Up was totally out of the picture
during such a mega event. In 1998 localization of marketing efforts, CCI signed up celebrities
like Aamir Khan, Aishwarya Rai, and Sunil Gavaskar to promote Coke. Coke also began efforts
to rejuvenate the Parle brands, Limca and Thumps Up. In 1998, India was declared the fastest
growing market within the Coca-Cola system. But things were far from normal. Attempts at
building growth through discounts and PET take home segment were not very successful
because of lack of coordination between the launches and marketing back-up.

To maintain good relationships with bottlers and avoid defections to the other camp, dealers
had been pampered by offering expensive overseas trips. In 2000, Coke wrote off investments
in India, amounting to $400 Mn. The revised value of CCI's assets after the charge was $300
mn.

CCI spent $3.5 mn to beef up advertising and distribution for Thumps Up. By 2002, it had
become India's No.2 cola drink after Pepsi. Maaza, the mango drink, was repositioned as a juice
brand and saw a growth of almost 30% in 2001. Since India was a large country of different
tastes and cultures, CCI customized its marketing strategy for different regions. It promoted the
Coke brand in Delhi, Thumps Up in Mumbai and Andhra Pradesh, and Fanta in Tamil Nadu.
Coke had plans to launch Rimzim, a spicy soda drink in North Maharashtra.

4.9 SWOT ANALYSIS OF COCA-COLA INDIA

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STRENGTHES WEAKNESSES
Distribution Network. Health Care Issues.
Strong Brand Image. Small Scale Sector
Reservations.
Low Cost of Operation.

SWOT
ANALYSIS
OPPORTUNITIES
THREATS
Large Domestic Markets.
Imports.
Export Potential.
Tax & Regulatory Sector.
High Income among People.
Slowdown in Rural Demand.

SWOT ANALYSIS OF COCA-COLA INDIA

STRENGTHES:

 DISTRIBUTION NETWORK

The Company has a strong and reliable distribution network. The network is formed on the
basis of the time of consumption and the amount of sale yielded by a particular customer in one
transaction. It has a distribution network consisting of a number of efficient salesmen, 700,000
retail outlets and 8000 distributors. The distribution fleet includes different modes of
distribution, from 10 tonne to open bay three wheelers that can navigate the narrow alleyways
of Indian cities – constantly keep Coca-Cola brands available in every nook and corner of the
Country’s remotest areas.

 STRONG BRAND IMAGE

Coke has its history of about more than a century and this prolonged sustenance has definitely
added to the brand image in the minds of the consumers and to its wallet. The products produced
and marketed by Coca-Cola India have a strong brand image.

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Strong brand names like Coca-Cola, Fanta, Thums up, Limca and Maaza add up to the brand
name of Coca-Cola Company as a whole. Coca Cola India for the first time has come out
with corporate campaign in India targeting its stakeholders. The multimedia campaign
“Little Drops of Joy " is aimed at raising the corporate brand image of the company which took
a heavy beating with a number of controversies it faced in different domains.

The new campaign is a part of a complete restructuring exercise in the Indian arm of this global
change. Coca Cola recently announced its new corporate strategy called the “5 Pillar" strategy.
The company has identified the 5 pillars as

 People.
 Planet.
 Portfolio.
 Partners.
 Performance.

 LOW COST OF OPERATIONS

In light of the company’s Affordability Strategy, Coca-Cola went about bringing a cost-focus
culture in the company. This included procurement Efficiencies – through focus on key input
materials, trade discipline and control and proactive tax management through tax incentives,
excise duty reduction and creating marketing companies. These measures have reduced the
costs of operations and increased profit margins.

WEAKNESSES:

 HEALTH CARE ISSUES


In India, there exists a major controversy concerning pesticides and other harmful chemicals in
bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE),
a non- governmental organization in New Delhi, said aerated waters produced by soft drinks
manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained
toxins including lindane, DDT, malathion and chlorpyrifos - pesticides that can contribute to
cancer and a breakdown of the immune system.

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 SMALL SCALE SECTOR RESERVATIONS


The Company’s operations are carried out on a small scale and due to Government restrictions
and ‘red-tapism’, the Company finds it very difficult to invest in technological advancements
and achieve economies of scale.

OPPORTUNITIES:

 LARGE DOMESTIC MARKETS

The domestic market for the products of the Company is very high as compared to any other
soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market;
this includes a 42 per cent share of the cola market.

Other products account for 16 per cent market share, chiefly led by Limca. The company
appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover
one lakh outlets for the coming summer season and this also covered 3,500 new villages. In
Bangalore, Coca-Cola amounts for 74% of the beverage market.

 EXPORT POTENTIAL

The Company can come up with new products which are not manufactured abroad, like Maaza
etc and export them to foreign nations. 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.

 HIGHER INCOME AMONG PEOPLE


Development of India as a whole has led to an increase in the per capita income thereby causing
an increase in disposable income. 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. Coca-Cola
Company can take advantage of such a situation and enhance their sales.

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THREATS:

 IMPORTS
As India is developing at a fast pace, the per capita income has increased over the years and a
majority of the people are educated, the export levels have gone high. People understand trade
to a large extent and the demand for foreign goods has increased over the years.
If consumers shift onto imported beverages rather than have beverages manufactured within the
country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the
sales of the Company.

 TAX & REGULATORY SECTOR


The tax system in India is accompanied by a variety of regulations at each stage on the
consequence from production to consumption. When a license is issued, the production capacity
is mentioned on the license and every time the production capacity needs to be increased, the
license poses a problem. Renewing or updating a license every now and then is difficult.
Therefore, this can limit the growth of the Company and pose problems.

 SLOWDOWN IN RURAL DEMAND


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; large number of daily wage earners, acute
dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and
festivals and special occasions; poor roads; power problems; and inaccessibility to conventional
advertising media. All these problems might lead to a slowdown in the demand for the
company’s products.

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5. HINDUSTAN COCA COLA BEVERAGES PVT LTD

Company that started in 1997 with the simple aim of making beverages for the India of the 21st
century. Two decades later, we are one of the top 5 FMCG companies.

Hindustan Coca-Cola Beverages Pvt. Ltd, is company owned bottling operation and the largest
bottling partner of The Coca-Cola Company in India. Part of The Coca-Cola Company’s
Bottling Investment Group (BIG), HCCBPL is responsible for the manufacture, package, sale
and distribution of beverages under the trademarks of The Coca-Cola Company. The company
has a national footprint with over 20 company owned and 09 co-pack plants. With a network
of over 5000 distributors and over 2.1 million retail outlets, Hindustan Coca-Cola Beverages
Pvt. Ltd.’s endeavour is to ensure products availability within the arms reach of consumers.

HCCBPL has always placed high value on good citizenship and to that end, is supporting
communities by enhancing skills of rural youth through Career Development Centre, improving
the lives of communities around its bottling plant by very focussed intervention in the areas of
access to safe drinking water, sanitation and promoting sustainable agriculture through
Integrated Watershed Management Projects under Public-Private-Community partnerships.

In the recent past, Hindustan Coca-Cola Beverages Pvt. Ltd. has joined hands with Government
of Maharashtra and Jain Irrigation Systems Ltd. (JISL) to support farmers growing oranges in
the state of Maharashtra. The Ground breaking ceremony took place on 29th December, 2016,
in the presence of the Hon’ble Chief Minister of Maharashtra. Under this initiative, farmers will
be given training on usage of Ultra High Density Plantation (UHDP) technique to boost orange
yield of Mandarin variety. UHDP is a modern agricultural practice that ensures higher yield of
agri-produce per acre of land and within a time span, compared to traditional methods of
farming. Project “Orange Unnati” seeks to unlock prospects of leveraging “NOGA” brand
(Nagpur Orange Grower Association) of Oranges and is estimated to benefit 5,000 farmers

6. HINDUSTAN COCA COLA BEVERAGES PVT LTD – BIDADI UNIT

Established in the year 1993, Hindustan Coca-Cola Beverages Pvt Ltd in Bidadi Industrial Area,
Bangalore is a top player in the category Soft Drink Manufacturers in the Bangalore. This well-
known establishment acts as a one-stop destination servicing customers both local and from

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other parts of Bangalore. Over the course of its journey, this business has established a firm
foothold in its industry. The belief that customer satisfaction is as important as their products
and services, have helped this establishment garner a vast base of customers, which continues
to grow by the day. This business employs individuals that are dedicated towards their
respective roles and put in a lot of effort to achieve the common vision and larger goals of the
company. In the near future, this business aims to expand its line of products and services and
cater to a larger client base. In Bangalore, this establishment occupies a prominent location in
Bidadi Industrial Area. It is an effortless task in commuting to this establishment as there are
various modes of transport readily available.

HCCB emerged the winner from among the 138 manufacturing industries, who had nominated
themselves to be considered for the awards.

ADDRESS
Hindustan Coca-Cola Beverages Private Limited
Brigade Magnum, Tower B, 7th-9th Floor,
Amruthahalli, Kodigehalli Gate, Hebbal
Bengaluru, Karnataka 560092
Bengaluru, Karnataka 560092

CONCLUSION

Though there were certain limitations in the study that was conducted. The study helped me in
various ways in understanding the company profile of Coca – Cola, Coca – Cola India and
Hindustan Coca-Cola Beverages (HCCB) Pvt. Ltd. The product ranges of Coca –Cola are more
popular because of its taste, brand name, innovativeness and availability. SWOT analysis
helped me to know about the strength, weakness, opportunities and threats in the market place.

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BIBLIOGRAPHY

WEBSITES:

 www.thecoca-colacompany.com
 www.news.bbc.co.uk
 www.india-server.com
 www.coca-colaindia.com
 www.wikiinvest.com

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