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Coca cola compamy india
Submitted by: GARVITA PANDEY BBA-III A7006409071 Faculty Guide: Mr. Samarth Pande Amity Business School Lucknow
(SUMMER PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF BACHELORS OF BUSINESS ADMINISTRATION)
AMITY BUSINESS SCHOOL ,LUCKNOW CAMPUS
This is to certify that Garvita Pandey has successfully completed her summer project on MARKETING OF COCA COLA COMPANY INDIA, under the able guidance of Mr.Samarth Pande for award of a degree of BACHELOR OF BUSINESS ADMINISTRATION from Amity University –Uttar Pradesh , Lucknow.
Signature: GARVITA PANDEY Student
Signature: Mr . SAMARTH PANDE Faculty Guide
Signature: PROF. R.P SINGH
FACULTY GUIDE CERTIFICATE
Forwarded herewith a summer project report on ‘MARKETING OF COCA COLA COMPANY INDIA’ submitted by GARVITA PANDEY, A7006409071 student of BBA, semester III. This project work has been done in partial fulfilment for degree of BACHELOR IN BUSINESS ADMINISTRATION from AMITY UNIVERSITY, UTTAR PRADESH
SIGNATURE: Mr.Samarth Pande
I express my sincere gratitude to my mentor Mr. Samarth Pande , faculty guide BBA, Amity School of Business, for his able guidance, continuous support and cooperation throughout my project report, without which the present work would not have been possible.
Place: Lucknow Date: . diploma. fellowship. India. or any other similar title or prizes. is my original work and not submitted for the award of any other degree.DECLARATION I hereby declare that the project report entitled: “MARKETING OF COCA COLA COMPANY INDIA PRIVATE LIMITED” Submitted in partial fulfilment of the requirement for the degree of Bachelors of Business Administration to Amity University.
CHAPTER 3 PRODUCTION TECHNIQUES AND ITS PORTFOLIO PRODUCTION . CHAPTER 2 PROFILE OF COCA COLA IN INDIA History of coke Indian history Indian beverage market Marketing cola in India 2001 marketing strategy Brand localization :the two Indians Rural success 2. CHAPTER 1 INTRODUCTION TO THE SOFT DRINK INDUSTRY Introduction Definition Production area Promotional activites Types 1.CONTENTS ** Objectives of study(on coco cola) 1.
BIBLIOGRAPHY . CHAPTER 4 COMPTETIVE MARKET SHARE OF COCA COLA IN INDIA SWOT HOW COMPTETIVE FORCES SHAPE STRATEGY MARKETING MIX STRATEGIC PLANNING 4. FORMULA USE OF STIMULANTS IN THE FORMULA LOCAL COMPETITOR BRAND PORTFOLIO PRODUCT PORTFOLIO 3. CHAPTER 5 CRITICISMS 5.
7. To know about the changes brought by coco cola in its products. limca etc. 5. maaza . To know the market position of coco cola company. .Objectives of study (on coco cola) The main objectives of my study are as following :1. 2. To know the marketing strategies of the company like promotional strategies which include advertising etc. 4. To know the future prospects of the company. To know the customer preferences and product demands regarding coco cola. 3. 6. To know the various innovations done by coco cola in recent years. thumbs up . mountain dew .To know the standing of coco cola as compared to other soft drinks like pepsi .
COCA.COLA Coca-Cola Type Cola Manufacturer The Coca-Cola Company Country of origin United States Introduced 1886 Color Caramel E-150d Pepsi Irn RC Cola Zam Related products Mecca Virgin Parsi Qibla Evoca Corsica Cola Zam Bru Cola Turka Cola Cola Cola Cola Cola Cola .
Chapter 1 Introduction to the Soft Drink Industry .
The one necessary ingredient which is unique is the artificial sweetener. has not eroded the profitability of the industry because of its concentration and the fact that the two major players have primarily competed on the basis of advertising and promotion and not price. and although it has not necessarily been clear which have been more successful historically. Several factors contribute to this profitability. although the emergence of new substitutes may pose the largest threat to the industry‘s profitability. For consumers. Suppliers and Buyers Suppliers to the soft drink industry are. while seeming intense. taste will be an important part of the preference for a particular soft drink.Introduction The soft drink industry has been a profitable one in spite of the ―cola wars‖ between the two largest players. Internal rivalry. Sugar. However. Profitability in the soft drink industry As analysis using Porter‘s five forces shows why the soft drink industry has been so profitable. for the most part. Entry is difficult both for reasons of scale and the strong brand identity of the current major players. providing commodity products and thus have little power over the industry. Buyers can be considered at the consumer or the retail level. Over the years the concentrate producers have experimented with different levels of vertical integration. the patent expired and another producer entered. Substitutes have not been close enough to take away significant market share. Suppliers and buyers have not had more power over the industry than it has had over them. reducing the market power of NutraSweet. thus although there is no monetary switching . and these factors also help to show why the profitability of the concentrate production side of the industry has been so much greater than the bottling side. aspartame is clearly preferred by consumers of diet beverages and for a time was under patent protection and therefore only available from one supplier. some decision criteria can be developed to help determine if and when complete vertical integration is necessary. bottles and cans are homogeneous goods which can be obtained from many sources. and the aluminum can industry has been plagued by excess supply.
Soft drink preparation carbonating Mineral and spring waters. mineral waters and concentrates and syrups for the manufacture of carbonated beverages. Soft drink concentrates and syrup. Principal activities and products: Aerated waters. Establishments primarily engaged in manufacturing fruit juices and noncarbonated fruit drinks are classified in Canned and Preserved Fruit and Vegetable Industry (SIC 1031).Definition of the Industry The Soft Drink Industry (SIC 111) consists of establishments primarily engaged in manufacturing nonalcoholic. carbonated beverages. and . Carbonated beverages.
5 lakh outlets across the country in FY00. Sodas too are sold largely in southern states besides sale through bars. Diet coke presently constitutes just 0. which the company is planning to increase to 8 lakhs by FY01. Haryana etc. Orange flavored drinks are popular in southern states. The distribution network of Coca cola had6. good quality and low cost. The market can also be segmented on the basis of types of products into cola products and non-cola products.7% of the total carbonated beverage market. Although the import and manufacture of international brands like Pepsi and Coke is enhanced in India the local brands are being stabilized by advertisements. Types Soft drinks are available in glass bottles. The soft drinks market till early 1990s was in hands of domestic players like campa. Limca etc but with opening up of economy and coming of MNC players Pepsi and Coke the market has come totally under their control. The brands that fall .SOFT DRINKS Soft Drink Production area The market preference is highly regional based. Cola. Cola products account for nearly 61-62% of the total soft drinks market. aluminum cans and PET bottles for home consumption. On the other hand Pepsi Co's distribution network had 6 lakh outlets across the country during FY00 which it is planning to increase to 7.5 Lakh by FY01. thumps up. While cola drinks have main markets in metro cities and northern states of UP. lemon and oranges are carbonated drinks while mango drinks come under non carbonated category. Punjab. Western markets have preference towards mango flavored drinks. Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and noncarbonated drinks. Growth promotional activities The government has adopted liberalized policies for the soft drink trade to give the industry a boast and promote the Indian brands internationally.
Diet Pepsi etc. Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of flavors available. Thumps Up. .in this category are Pepsi. diet coke. Clear Lime and Mango. namely: Orange.Cola. Coca. Cloudy Lime.
Chapter 2 Profile of Coca-Cola India .
growing quickly to reach 370 franchisees by 1910. marketer. with more than 400 widely recognized beverage brands in its portfolio. and effective advertising a challenge with language. achieving only 0. and government regulation all serving as barriers. who sold the syrup mixed with fountain water as a potion for mental and physical disorders. was being sold in every state and territory in the United States. it franchised its bottling operations in the U. wherever he is and at whatever cost to our company‖14 was more than just great public relations.12 Coca-Cola continued working for over 80 years on Woodruff‘s goal: to make Coke available wherever and whenever consumers wanted it. ―in arm‘s reach of desire. The formula changed hands three more times before Asa D. As a result of Coke‘s status as a military supplier. While per capita consumption throughout the world was .History of Coke The Early Days Coca-Cola was created in 1886 by John Pemberton. Coca-Cola was registered as a trademark in 1887 and by 1895. a pharmacist in Atlanta.15 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. 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. and Panama. volume was low.‖13 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. quality inconsistent. machinery.S.11 By the end of the 1920‘s Coca-Cola was bottled in twenty-seven countries throughout the world and available in fifty-one more. Coca-Cola was exempt from sugar rationing and also received government subsidies to build bottling plants around the world to serve WWII troops. Woodruff‘s patriotic commitment ―that every man in uniform gets a bottle of Coca-Cola for five cents. caps.2% growth by 2000 (just under 10 billion cases) in contrast to the 5-7% annual growth experienced during the 1980‘s. culture. trucks. Candler added carbonation and by 2003. Coca-Cola generated more than 70% of its income outside the United States by 2003 International expansion Coke‘s first international bottling plants opened in 1906 in Canada.. In 1899. With the bubbles making the difference. Georgia.‖ and instead would use local bottles. Coca-Cola was the world‘s largest manufacturer.10 Headquartered in Atlanta with divisions and local operations in over 200 countries worldwide. In spite of this reach. and distributor of nonalcoholic beverage concentrates and syrups. Cuba.
18 Its catchy. and trusted refreshment of choice across the decades and around the globe. the economy was increasingly regulated and many sectors were restricted to the public sector. At the beginning of the twenty-first century. distilling the percentage of revenues that could be credited to the brand. Indian History India is home to one of the most ancient cultures in the world dating back over 5000 years. In 1991. ―Can‘t beat the Feeling‖ (1987). Considerations included market leadership. A British colony since 1769 when the East India Company gained control of all European trade in the nation. well-liked slogans19 (―It‘s the real thing‖ (1942. and global reach. 30% of the population knew English. This movement reached its peak in 1977 when the Janta party government came to power and Coca-Cola was thrown out of the country. stability. As a result. twenty-six different languages were spoken across India. relevant. 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.17 From the beginning. In the process. and a 1992 return to ―Can‘t beat the real thing‖) 20 linked that personality to the core values of each generation and established Coke as the authentic. incorporating its ability to cross both geographical and cultural borders.a fraction of the United States‘. 1-0085 looming opportunity for twenty-first century was in the world‘s developing markets with their rapidly growing middle class populations. the first generation of economic reforms was introduced and liberalization begun. India gained its independence in 1947 under Mahatma Ghandi and his principles of nonviolence and self-reliance. The World’s Most Powerful Brand Interbrand‘s Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand in the World and estimated its brand value at $70. At this time. and greater than 40% were illiterate. Coke understood the importance of branding and the creation of a distinct personality.16 The ranking‘s methodology determined a brand‘s valuation on the basis of how much it was likely to earn in the future. In the decades that followed. and assessing the brand‘s strength to determine the risk of future earnings forecasts. The Coca-Cola India no. India had created the world‘s largest middle class. ―Coke is it‖ (1982). ―Things go better with Coke‖ (1963). the nation was in the midst of great transition and the dichotomy between the old India and the new was stark. self-reliance was taken to the extreme as many Indians believed that economic independence was necessary to be truly independent. second only to China.45 billion . major beverage companies clearly had to look elsewhere for the growth their shareholders demanded. 1969). .
Coca-Cola India produced its beverages with 7. In 2000. Sprite and Fanta. Shock energy drink and the powdered concentrate Sunfill hit the market.23 Encouraged by its 2002 performance. and distribution networks. The complete manufacturing process had a documented quality control and assurance program including over 400 tests performed throughout the process. cementing its presence with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network. Coca-Cola India had won the prestigious Woodruf Cup from among 22 divisions of the Company based on three broad parameters of volume. From 1993 to 2003. supply.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 Coca-Cola India no.000 Indians through its procurement. and distribution assets but also strong consumer preference. including CocaCola. joined Coke in 1997 as Vice President. Coke‘s acquisition of local popular Indian brands including Thums Up (the most trusted brand in India21). Coca-Cola India announced plans to double its capacity at an investment of $125 million (Rs. The complexity of the consumer soft drink market demanded a distribution process to support 700. President and CEO of Coca-Cola India. diet Coke. Maaza. 1-0085 Exchange Regulation Act (FERA) which governed the operations of foreign companies in India.22 By 2003. Sanjiv Gupta. Limca. Leading Indian brands joined the Company's international family of brands.000 local employees at its twenty-seven wholly-owned bottling operations supplemented by seventeen franchisee-owned bottling operations and a network of twenty-nine contract-packers to manufacture a range of products for the company. After a 16-year absence. profitability.000 retail outlets serviced by a fleet that includes 10-ton trucks. and trademarked tricycles and pushcarts that were used to navigate the narrow alleyways of the cities. making it one of the country‘s top international investors. Coke indirectly created employment for another 125. the company launched the Kinley water brand and in 2001. and quality. open-bay three wheelers. Marketing and was instrumental to the company‘s success in . Coca-Cola invested more than US$1 billion in India. Coca-Cola 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. 750 crore) between September 2002 and March 2003.25 In addition to its own employees. 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. Coca-Cola returned to India in 1993. bottling. plus the Schweppes product range. Citra and Gold Spot provided not only physical manufacturing.
The Indian Beverage Market India‘s one billion people. fruit juices. tea. 173 in the Philippines and 800 in the United States. While soft drinks were once considered products only for the affluent. Gupta and his marketing prowess were critical to the continued growth of coca cola. green coconut water. . middle and upper middle classes. Gupta served as Head of Operations for Company-owned bottling operations and then as Deputy President.28 In spite of this growth. 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. from 5. 73 in Thailand. villages.670 million bottles to over 10. powdered drinks. Coke and Pepsi dominated the market and together had a consolidated market share above 95%. Seen as the driving force behind recent successful forays into packaged drinking water.developing a brand relevant to the Indian consumer and in tapping India‘s vast rural market potential. and small towns where annual per capita consumption was less than four bottles. annual per capita consumption was only 6 bottles versus 17 in Pakistan. Soft drink sales in India grew 76% between 1998 and 2002. growing middle class. and lassi. In 2001. by 2003 91% of sales were made to the lower. Coca-Cola recognized that to compete with traditional refreshments including lemon water. Following his marketing responsibilities. and ready-to-serve tea and coffee.000 million and were expected to grow at least 10% per year through 2012. With its large population and low consumption. competitive pricing was essential. Coke launched a smaller bottle priced at almost 50% of the traditional package. the rural market represented a significant opportunity for penetration and a critical battleground for market dominance. In response. 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.
Pepsi‘s head-start gave Coke a disadvantage in the mind of the consumer. Pepsi tried to gain entry into India and finally succeeded with the Pepsi Foods Limited Project in 1988. The foundation of the new strategy grounded brand positioning and marketing communications in consumer insights. Punjab government-owned Punjab Agro Industrial Corporation (PAIC). 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. act local‖ mantra. gave Coke direction on the . This lens. Pepsi‘s appeal focused on youth and when Coke entered India in 1993 and approached the market selling an American way of life. the task was to narrow the brand positioning. after almost a decade of lagging rival Pepsi in the region. it failed to resonate as expected. Recognizing that a single global strategy Coca-Cola India no. informed by consumer insights. focusing on differentiation through offering unique and compelling value. As early as 1985. acknowledging that urban versus rural India were two distinct markets on a variety of important dimensions. 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. where both the soft drink category and individual brands were . 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. In 2001. 1008 or single global campaign wouldn‘t work. particularly in rural markets. The soft drink category‘s role in people‘s lives. the task was to broaden the brand positioning while in urban markets. as a JV of PepsiCo. locally relevant executions became an increasingly important element of supporting Coke‘s global brand strategy. Coke India re-examined its approach in an attempt to gain leadership in the Indian market and capitalize on significant growth potential.30 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. the degree of differentiation between consumer segments and their reasons for entering the category.32 In rural markets. and Voltas India Limited.Marketing cola in India The post-liberalization period in India saw the comeback of cola but Pepsi had already beaten CocaCola to the punch. becoming a fully-owned subsidiary and ending the JV relationship in 1994. with higher category and brand development. Though Coke benefited from Pepsi creating demand and developing the market.31 2001 Marketing Strategy Coca-Cola CEO Douglas Daft set the direction for the next generation of success for his global brand with a ―Think local.
lassi. ―Life ho to aisi. represented 4% of the country‘s population. ―Thanda. 34 In an effort to make the price point of Coke within reach of this high-potential market. Coca-Cola won Advertiser of the Year and Campaign of the Year in 2003. 1-0085 Rs. 10 and an average day‘s wages around Rs. unique marketing strategies were required in urban versus rural India. to Coca-Cola India no.‖ the phrase directly addressed both the primary need of this segment for cold refreshment while at the same time positioning Coke as a ―Thanda‖ or generic cold beverage just like tea. smaller than the traditional 300ml bottle found in urban markets. celebrating the benefits of their increasing social and economic freedoms. 5.‖ (life as it should be) was “the successful and relevant tagline found in Coca-Cola‘s advertising to this audience.‖ the designation Coca-Cola gave to the market segment including metropolitan areas and large towns. Coke invested in distribution infrastructure to effectively serve a disbursed population and doubled the number of retail outlets in rural areas from 80. Literally translated to ―Coke means refreshment. CocaCola launched the Accessibility Campaign. This pricing strategy closed the gap between Coke and basic refreshments like lemonade and tea. increasing market penetration from 13 to 25%.000 in 2003.‖ meaning cool/cold is also generic for cold beverages and gave ―Thanda Matlab Coca-Cola‖ delicious multiple meanings. .000 in 2001 to 160. ―India B‖ included small towns and rural areas. introducing a new 200ml bottle. Coke was perceived as a luxury that few could afford.tradeoff between focus and breadth a brand needed in a given market and made clear that to succeed in either segment.35 Coke‘s advertising and promotion strategy pulled the marketing plan together using local language and idiomatic expressions. and concurrently cutting the price in half. comprising the other 96% of the nation‘s population. 100. At the same time. or lemonade. Additionally. making soft drinks truly accessible for the first time. India:”Thanda 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.33 This segment sought social bonding as a need and responded to a spirational messages. with an average Coke costing Rs. As a result of the Thanda campaign. Brand Localization Strategy: The Two Indians India A: “Life ho to aisi” ―India A. This segment‘s primary need was out-of-home thirst-quenching and the soft drink category was undifferentiated in the minds of rural consumers.
41% of its middle class. 5 product. the rural market was an attractive target and it delivered results. Coke experienced 37% growth in 2003 in this segment versus the 24% growth seen in urban areas.RURAL SUCCESS Comprising 74% of the country's population. . per capita consumption doubled between 2001-2003. and 58% of its disposable income. Driven by the launch of the new Rs.
CHAPTER 3 PRODUCTION TECHNIQUES AND ITS PORTFOLIO .
each knows the entire formula and others. The truth is that while Coca-Cola does have a rule restricting access to only two executives. who hold Coca-Cola franchises for one or more geographical areas.PRODUCTION Bottles of Coca-Cola Zero and Coca-Cola Light Formula The exact formula of Coca-Cola is a famous trade secret. in addition to the prescribed duo. with each executive having only half the formula. A popular myth states that only two executives have access to the formula. which it sells to bottlers throughout the world. The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners. Franchised production model The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola Company only produces a syrup concentrate. have known the formulation process. The original copy of the formula is held in SunTrust Bank's main vault in Atlanta. . and then carbonate it before putting it in cans and bottles.
in 1891. spokesman for Peru's state-owned National Coca Co Kola nuts — Caffeine Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. which it sells to Mallinckrodt. hoping to force Coca-Cola to remove caffeine from its formula. The cocaine was derived from the coca leaf and the caffeine from kola nut. Stepan Company buys about 100 metric tons of dried Peruvian coca leaves each year. leading to the name CocaCola (the "K" in Kola was replaced with a "C" for marketing purposes)." Kola nuts contain about 2 percent to 3. After 1904. Forty Barrels and Twenty Kegs of Coca-Cola. Coca — Cocaine Pemberton called for five ounces of coca leaf per gallon of syrup. the ingredient label states "Flavourings (Including Caffeine).S. according to Marco Castillo. Stepan Company extracts cocaine from the coca leaves. Besides producing the coca flavoring agent for Coca-Cola.USE OF STIMULANTS IN FORMULA When launched Coca-Cola's two key ingredients were cocaine (benzoylmethyl ecgonine) and caffeine. The case was decided in favor of Coca-Cola. In the United States. Bolivia. instead of using fresh leaves.5 percent caffeine. Candler claimed his formula (altered extensively from Pemberton's original) contained only a tenth of this amount. a significant dose. adding caffeine to the list of "habit-forming" and "deleterious" substances which must be listed on a product's label. Coca-Cola still contains coca flavoring. to a lesser extent. . Coca-Cola did once contain an estimated nine milligrams of cocaine per glass. Stepan Company is the only manufacturing plant authorized by the Federal Government to import and process the coca plant. Pure Food and Drug Act was amended. but in 1903 it was removed.S. government initiated United States v. a St. Subsequently. which it obtains mainly from Peru and. Louis. In Britain. In 1911. the U. Missouri pharmaceutical manufacturer that is the only company in the United States licensed to purify cocaine for medicinal use. in 1912 the U. for example. are of bitter flavor and are commonly used in cola soft drinks. Coca-Cola started using "spent" leaves—the leftovers of the cocaine-extraction process with cocaine trace levels left over at a molecular.
Caffeine is an ergogenic aid used to increase the capacity for mental or physical labor.Coca-Cola contains 34 mg of caffeine per 12 fluid ounces. while Diet Coke Caffeine-Free contains 0 mg. .
some local brands compete with Coke. As of 2004. is served in Cuba instead of Coca-Cola. Coca-Cola ranked third behind the leader. Around the world. Classiko Cola. the largest manufacturing company in Madagascar . RC Cola is an inexpensive competitor. Cola Turka is a major competitor to Coca-Cola. Zam Zam Cola and Parsi Cola are major competitors to Coca-Cola. Laranjada is the top-selling soft drink on the Portuguese island of Madeira . French brand Mecca Cola and British brand Qibla Cola. Tropicola. CocaCola held a 60. is a serious competitor to Coca-Cola in many regions. In Turkey. Mercator. In Israel.9% market-share in India. which is sold only in the country's biggest supermarket chain. made by Tiko Group.In India. as is the inexpensive Mercator Cola. In Iran and many countries of Middle East. In some parts of China Future cola is a competitor. the locallyproduced Cockta is a major competitor to Coca-Cola. The Coca-Cola Company purchased Thums Up in 1993. Pepsi-Cola. due to a United States embargo. but outsells Coca-Cola in some markets. popular in the Middle East. In Slovenia. and local drink Thums Up.LOCAL COMPTETIORS Pepsi is usually second to Coke in sales. are competitors to Coca-Cola. a domestic drink.
New Coke/"CocaCola II" Still available in: American Samoa. Tunisia. Spain. Netherlands. Hong 2001 2005 Kong. Réunion. Belgium. Called Coca-Cola Cherry 1985 "Cherry Coca-Cola (Cherry Coke)" in North America until 2006. China. Germany. Taiwan. Caffeine-Free Coca-Cola 1983 Was available in Canada starting in 1996. Macau. Iceland. Korea. United States. Luxembourg. Mongolia. France. South Africa. Malaysia. Zero-calorie variant (CocaCola Cherry Zero) also currently available.BRAND PORTFOLIO Name Launched Discontinued Notes Picture Coca-Cola 1886 The original version of Coca-Cola. and West Bank-Gaza Coca-Cola 2002 2005 Still available in: . Denmark. United Kingdom. Austria. Singapore. 1985 2002 Still available in Yap and American Samoa Switzerland. Brazil. Federation of Bosnia and Coca-Cola with Lemon Herzegovina. Norway. Finland.
Spain. Mexico and Brazil Coca-Cola Black Vanilla Cherry 2006 Middle 2007 of Was replaced by Vanilla Coke in June 2007 Only available in the United States. Coca-Cola Blāk 2006 Beginning of Canada. 2005 Only available in Federation of Bosnia and Coca-Cola M5 2005 Herzegovina. Italy. New Zealand and Japan. . Bulgaria and Lithuania Coca-Cola Citra 2006 Only available in Federation of Bosnia and Herzegovina. Germany. availability. New Zealand (600ml only) Malaysia. 2008 Czech Republic. China. Australia. and Canada June 2005 End of 2005 Was only available in New Zealand.S. and the United States. Canada. South Africa. France.Vanilla Austria. Netherlands. Sweden (Imported) and Russia. 2007 It was reintroduced in June 2007 by popular demand Was only available in Japan. Coca-Cola C2 2003 2007 Coca-Cola with Lime Coca-Cola Raspberry Coca-Cola Zero 2005 Singapore. Germany. Hong Kong. Was called "Vanilla Coca-Cola (Vanilla Coke)" during initial U. Federation of Bosnia and Herzegovina. Slovak Republic. Still available in Belgium.
our still and water beverages accounted for approximately 37 per cent of our total volume. Our range of ready-to-drink Nestea brands is gaining popularity amongst consumers. market and sell to customers the most valuable brand in the world. With more than 30 water brands in our portfolio. as we introduce new flavours and ingredients offering functional benefits. in response to new preferences and tastes. In broadening our product portfolio of brands. A balanced product offering We are constantly expanding the range of brands and flavours offered to our customers and consumers across growing non-alcoholic beverage categories. Only available in the United Kingdom and Gibraltar Introduced in bottle form after Coke Classic in 2007 2008 cans was made. At the end of 2007. we focus on generating value through the ‗on-the-go‘ or immediate consumption occasion. Coca-Cola. In addition we have a further 90 other non-alcoholic brands and over 700 flavour variants. we are offering our consumers more choices than ever.Coca-Cola Light Sango Coca-Cola Orange Coca-Cola Classic 2006 Only available in France and Belgium. Expanding consumer choice with innovation . Available in Australia and theUnited States PRODUCT PORTFOLIO We produce.
Guideline daily amount (GDA) labels provide at-a-glance information on the calories in a beverage. Nutritional labelling information In 2007 we began introducing new labels in our European Union (EU) member states to help consumers understand the calorific content of beverages.It is important that we are present in every consumption occasion. in the most appropriate package and across each sales channel. An elegant 330ml sleek can has been introduced in Italy. fat. no. We pride ourselves on thinking ‗outside the bottle‘ and consider new ways to broaden our beverage brand portfolio through brand and packaging innovation. which ultimately results in a 33 per cent reduction in glass used in bottles. . These are reported per serving and as a proportion of a healthy diet. Burn packaging includes a new 500ml can and an aluminium bottle launched in a number of selected markets. along with the sugar.and low-calorie beverages are clearly labelled on front-of-pack. This commitment is being rewarded with a growing demand for our brands across all beverage categories. so that consumers can identify them more easily. saturated fat and salt content. New packaging solutions We introduced a range of new packaging solutions in 2007 to broaden our brands offering to consumers and address the trend towards increased convenience. We continue to steadily expand the availability of our ultra-light glass bottle for our sparkling products. with the right brand. Additionally. This provided significant differentiation in our largest can market and supported growth of the sparkling category. the most important piece of information needed to control weight.
CHAPTER 4 COMPTETIVE MARKET SHARE OF COCA COLA IN INDIA .
The Coca-Cola image is displayed on T-shirts. This extremely recognizable branding is one of Coca-Cola's greatest strengths.its Strengths and Weakness. unit case sales fell 3% in the second quarter [of . Additionally. al. et. It allows them to conduct business on a global scale while at the same time maintain a local approach. its main source of revenue is the sale of concentrate to its bottlers (Bettman." According to an article in Fortune magazine. The product's image is loaded with over-romanticizing. SWOT consists of examining the current activities of the organisation. (1998) Coca-Cola's bottling system is one of their greatest strengths. 1995). Coca-Cola has recently reported some "declines in unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power. and collectible memorabilia. yet powerful symbol of quality and enjoyment" (Allen. al. and this is an image many people have taken deeply to heart. and threats. "In Japan. hats. SWOT Analysis for Coca-Cola The following analysis deals only with strengths.and then using this and external research data to set out the Opportunities and Threats that exist. according to Bettman. opportunities.SWOT SWOT stands for Strengths Weakness Opportunities Threats SWOT analysis is a technique much used in many general management as well as marketing scenarios. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. et. "Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple. Because Coke does not have outright ownership of its bottling network. Weaknesses: Although domestic business as well as many international markets are thriving (volumes in Latin America were up 12%). 1998). Strengths: Coca-Cola has been a complex part of American culture for over a century.
and hot chocolate ("Cola Wars". Coca-Cola on the other side has effects on the teeth's which is an issue for health care. allowing them to have further significant market shares and offset any losses incurred due to fluctuations in the market ("Cola Wars". Being addicted to Coca-Cola also is a health problem. however. Packaging changes have also affected sales and industry positioning. juices. milk. is a very real threat. This strategy gives Coke the opportunity to service a large geographic. Threats: Currently. the changing health-consciousness of the market could have a serious affect. 1991).1998]. area (Bettman. Southeast Asia. both Coke and Pepsi have already diversified into these markets. and Japan account for about 35% of Coke's volume and none of these markets are performing to expectation (Mclean. Coca-Cola's brand name is known well throughout 94% of the world today.Cola and Pepsi control nearly 40% of the entire beverage market. Of course. al. The primary concern over the past few years has been to get this name brand to be even better known. the threat of new viable competitors in the carbonated soft drink industry is not very substantial. coffee. 1995). 1998). diverse. et. but consumers are not necessarily married to it. the public has tended not to be affected by new products (Allen. Opportunities: Brand recognition is the significant factor affecting Coke's competitive position.. but in general. It also has got sugar by which continuous drinking of Coca-Cola may cause health problems. Coca-Cola's bottling system also allows the company to take advantage of infinite growth opportunities around the world. 1998). Latin America. because drinking of Coca-Cola daily has an effect on your body after few years.. . Even though Coca. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea. The soft drink industry is very strong. it contributes three times as much to profits. 1991).scary because while Japan generates around 5% of worldwide volume. The threat of substitutes.
The rivalry between Pepsi and Coke has produce a very slow moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or face losing market share to the competition. 1991).Consumer buying power also represents a key threat in the industry. consumers can easily switch to other beverages with little cost or consequence ("Cola Wars". Furthermore. .
RANKINGS AS PER BRAND VALUES .
All three of these companies have expanded globally which leads to a great amount of competition. ―How competitive forces shape strategy. Porter on his article piece called. The Coca-Cola and the Pepsi-Cola companies are two good examples for this case.‖ These five forces determine the attractiveness of an industry. this industry has almost reached its peak and growth is fairly small. threat of substitute products. the suppliers. and economies of scale. jockeying for position. We will look at how these five forces will come into play in the Cola Industry. the substitute products. 2004). We should also take into consideration that entering this industry would probably come with high fixed costs for warehouse.HOW COMPTETIVE FORCES SHAPE STRATEGY To be successful in any industry. Coke still has the number of sales in the global market but Pepsi is not far behind. The numbers clearly shows that Coke and Pepsi are dominating this industry through their brand name and their great distribution channels (Yoffie. with the greatest competition occurring from rival sellers within the industry. it would make it very difficult for new companies . The competitive pressure from rival sellers is the best competition that Coca-Cola faces in the Cola industry. 2004). labor. The Cola industry is competitive for all companies involved. the threat of new entrants. and the bargaining power of customers (Porter). In the earlier years. In addition. the bargaining power of suppliers. Coke and Pepsi are the two largest competitors in this industry with Cadbury Schweppes in distant third (Yoffie. With Coke and Pepsi already setting standard prices. This makes it difficult for new starting company to start competing with Coke or Pepsi. 2004). The Cola industry according to the Cola Wars article states that this industry is very competitive (Yoffie. From the Cola Wars article. the Coca-Cola Company has been dominating the market in terms of sales but recently Pepsi has been dominant in domestic sales. This shows how Pepsi is the main competitor for Coke and how both of these companies have been going at it for years. and the buyers. The five forces are Jockeying for position. The threat of new entrants does not have a big impact on the Cola industry compared to the other four competitive forces. there are five important forces that every company should be aware of according to Michael E. All the Cola companies have to think about are the pressures from the rival sellers within the industry of the new entrants.
and other soft drinks companies. The powers of buyers and sellers are also important because they are the ones that keep the Cola market going. 2004). So what did the five competitive forces do for the Cola industry? The five forces showed that the rivalry within the Cola industry is the driving force of the industry. The threats of substitute products are in all types of industries where prices. . And finally. From both articles. coffee. Restaurants on the other hand. caffeine in this case. and performance play a role for each decision. And this takes away the suppliers‘ bargaining power. Sports and water bottle drinks are becoming more popular with customers in that they are healthier than either Coke or Pepsi. Therefore. The bargaining powers of customers of the Cola industry are mostly grocery stores.to enter. The bargaining power of suppliers of the Cola industry deals mostly with the bottling equipment manufacturers and packaging. The substitutes are bottled water. The substitute products in the Cola industry many believe come from the other beverages industry. and tea (Yoffie. Coffee and tea on the other hand. and restaurants (Yoffie. it clearly showed the bargaining power of the customer where the grocery and discount stores would buy large volumes of either Coke or Pepsi products at a lower price compared to the regular price. new companies or new entrants are not a strong competitive force in the Cola industry. it would give the suppliers little or no bargaining power. This would make it easy for a company to switch to different suppliers. Many people would pick health reasons for picking a substitute. does not have that much power in that they purchased fountain drinks and can‘t get it in large volumes. Since they own the most of the bottlers. the company owns the largest Coke bottler in the world. 2004). sports drinks. are also considered substitutes in that they provide caffeine. We see this through the battles of Coke. With health. It is also very difficult for new entrants to enter an industry that has almost reached its peak where most of the things are already played out and comes with high or fixed standards. discount stores. In the case of the Coca-Cola Company. Pepsi. and a kick of energy shows the threat of substitute products. it might be cheaper to go for the substitute for price sensitive customers. Some would pick a substitute that gives out the same quality. quality. they provide the same type products throughout the Cola industry. With the equipment manufacturers. price.
An additional pricing factor to be considered by both Pepsi and Coca-Cola is determining the extent to which mixes of cost-based and value-based pricing strategies are used. between the price of their cola inside the store and that from the vending machine. By creating brand loyalty both companies may be able to charge a higher price compared to President‘s Choice‘s cola because each soft drink may have a devoted following. Simon Fraser University). This is because vending machines tend to capitalize on impulse purchasing. budget conscious consumer. consumers are willing to pay the higher price for the product they desire. whereby consumers may be willing to pay the higher price just for the convenience of obtaining the product (e.g. However there are many instances where . Value-based pricing may also be seen in the price variations used by both companies with respect to where consumers purchase these products. value-based pricing is used by Pepsi and Coca-Cola. consumers expect to pay more as compared to President‘s Choice. there are many instances where this concept does not hold. customers have a relatively low reference price. For example. On one hand. However. so that these companies do not make a business-ending mistake of over charging and losing a huge part of their market share. because both companies are selling an image along with their products. Pepsi and Coca-Cola have been engaged in an intense price and market share war. President‘s Choice in contrast appears to be primarily using cost-based pricing. This preference for a low price is an important consideration for both Pepsi‘s and Coca-Cola‘s decisions regarding pricing. While maintaining the branding strategy. Observation analysis has concluded that in the locations where President‘s Choice uses vending machines – primarily just outside the grocery stores that sell President‘s Choice products – there is a very minimal difference. This company‘s objective may be to target the family oriented. both Pepsi and Coca-Cola need to be consciously aware of what competitors are charging. if any at all. The cost-based strategy may be used to charge a price that is still able to make both companies a profit so that may maintain a cash-inflow to cover production costs. since cola fits into convenience products under the staples category.MARKETING MIX Price For years. Therefore. thereby aiming for the lowest price possible through minimized production costs. grocery and convenience stores may charge a lower price as compared to vending machines. Additionally. both companies may be using branding to establish brand loyalty among their respective consumer bases to help increase market share. On the other hand. as such.
Observation analysis has concluded that in the locations where President‘s Choice uses vending machines – primarily just outside the grocery stores that sell President‘s Choice products – there is a very minimal difference. using specific product names. Currently. Whereas.‖ This promotion consists of Pepsi representatives going to locations where young people can be found. one brand makes a direct comparison to another brand. and other computer generated visuals to help promote and sell its products. Pepsi has used more celebrities in their commercials than Coca-Cola has. et al. Coca-Cola is one of the official sponsors of the FIFA World Cup competition and is also supporting the upcoming Warner Bros release of the 2002 movie ―Harry Potter and the Chamber of Secrets‖ (CocaCola. the two major players in the cola industry. For example. The major difference between these two competitors is the extent to which both use this type of promotional gimmick. in price of their cola. because there are usually prizes to be won. Pepsi is currently working on a promotional . The final concept is reminder advertising. computer generated polar bears. and setting up booths to conduct taste-tests with samples of Pepsi and Coca-Cola. which serves to remind the public of a company‘s product. with each competitor constantly trying to outdo the other. An additional concept that can be explored between Pepsi and Coca-Cola is the amount of comparative advertising that Pepsi uses in relation to Coca-Cola..this concept does not hold. Promotions may be one of the most dynamic areas of competition for these two competitors. and Cindy Crawford to promote Pepsi. Press Centre). The benefit of this type of promotion is that Pepsi may be able to quickly attract consumers. 2002). This strategy of Pepsi to use better-known individuals is an attempt to create a distinguished brand image. With comparative advertising. An example of this is the Pepsi ―Taste Test Challenge. appear to be spending millions of dollars annually competing against each other through the use of a mass selling approach via advertising (Shapiro. such as Michael Jackson. respectively. Pepsi and Coca Cola use reminder advertising by placing their brand names at key locations at sporting and music events and also by sponsoring these sporting events and movies.. such as concert venues and malls. 2002). often making specific superiority claims (Shapiro. Promotion Pepsi and Coca Cola. et al. Britney Spears and Christina Aguilera have been used to promote Pepsi and Coca-Cola. Coca-Cola may be appealing to the basic desire of the consumer for a cola-type product by displaying regular people in everyday life. Examples of this approach to advertising include promoting the use of well-known celebrities and models. if any at all. 2002.
President‘s Choice‘s use very low-key forms of advertising to promote its products. Product Products may be seen as more than just tangible items. and ability to reach a large consumer base that both Pepsi and Coca-Cola have. all three competitors supply healthier variations of their cola products such as a diet cola. Pepsi and Coca-Cola have been regarded as close substitutes because of the similar products both companies offer. They are trying to negotiate an agreement with the Russian space program whereby a Pepsi consumer could win a ride on the Russian Soyuz space shuttle. each brand offers a product that has a lemon flavour. for the health conscious consumers. offer more than just a drink. each competitor may also be further focused on gaining a competitive edge in the soft drink market by concentrating on product differentiation. PepsiCo website For some time now. Insider Report). budget conscious consumer. President’s Choice Regular Cola Diet Cola Coca Cola Company Classic Coke Diet Coke Diet Coke with lemon Vanilla Coke PepsiCo Pepsi Cola Diet Pepsi Pepsi Twist Pepsi Blue *Information from Coca Cola Company website. which include a quarterly produced newsletter. They try to meet diverse consumer needs by developing different colaflavoured products for the market. and President‘s Choice to a very minor degree. Coca-Cola as of yet has not come up with such a large-scale promotional gimmick. and in-store fliers and promotions (President‘s Choice. The following table illustrates just a few of the other cola products that each firm produces for the Canadian market. pg. The implications of this low-key approach to advertising is that President‘s Choices advertisements only reach a small portion of the total consumer base – specifically those consumers who actually go into the Loblaw affiliated grocery stores to shop and also those consumers who visit the President‘s Choice website. 2002. 2002.gimmick that may increase overall sales of Pepsi products by a huge margin. Coca Cola. President‘s Choice‘s marketing and promotional tactics do not even come close to the financial power. However. this company may be seen as differentiating itself from the major players by targeting the family oriented. For example. 255). For example.. they are also ―the need-satisfying offering of a firm‖ (Shapiro et al. However. Two ways Pepsi and Coca-Cola have . Pepsi.
For instance. Depending on the local consumer demands and other market factors. it has not been as successful as Coca-Cola (Pepsiworld. Coca-Cola‘s original contour bottle has always been the signature shape for its brand (Coca-Cola. President‘s Choice cola products have an even simpler design. One main drawback to standardized sizes of these products is that it makes substitution fairly easy. heavy emphasis must not only be placed on designing a product that will sell. but also on the packaging of the product. 2002. Our Company – Bottling Today). In analyzing President‘s Choice products. Thus. nor do they encompass many graphics or colors on the package. As noted by Farlander (2000) ―the package is the product. Our Company – History Bottling). Place These days. plastic bottles that allow for effortless dispensing of the product. 2002. local bottlers decide what to produce and where to sell. and ability to be recyclable. cylinder shaped cans that are easy to stack. As the objective of President‘s Choice is to supply lower-priced quality products. This again is due to the company‘s efforts to provide a low-cost product. convenience of storage. while brand image and quality may be a secondary issue. we can conclude that this company differs from Pepsi and Coca-Cola in that it delivers the most basic cola products only.‖ A few qualities that may make a good package are the ease of purchase and ease of use by the consumer. as they have become a part of consumer‘s daily lives. to be distinguishable in the market. and recyclable containers. increasing shelf visibility at all possible retail . Although Pepsi presented a similar bottle design with ―swirls‖ in 1958. President‘s Choice products try to target those consumers who consider price to be their primary issue. The various package sizes offered in the marketplace may aid in meeting the diverse needs of consumers.accomplished this is by relaunching old products that have been modified or launching brand new products. All three of the competitors have addressed these issues by packaging the products in: easy to carry cardboard boxes. its consumer base may be willing to sacrifice the famous brands by paying less for relatively equivalent products. value-added packaging—creation of the product‘s entire package including container shapes and product colors—is essential (Farlander. not all retailers will sell the same mix of cola products. Current – Company Info – Index). This degree of product availability is usually determined by local bottlers (Coca-Cola. In essence. soft drinks can be effortlessly sought out in the marketplace. When products are introduced to the market. This company‘s cola bottles have no special design. This past year may be seen as a testament to this as Coca-Cola relaunched one of its timehonoured classics – Vanilla-Coke – and Pepsi offered the market a very different soft drink – Pepsi Blue. Additionally. 2002. 2000). Therefore.
petroleum dealers. such as the Real Canadian Superstore.‖ (Loblaw. Atlantic Superstore. and guidelines. expectations. 2001 Annual Report). 2002. STRATEGIC PLANNING If there is one common theme among the current and future strategic plans. From this. 2002. 2000).‖ (Coca-Cola. Coca-cola centers its attention on profits. For example Pepsi‘s growth outlook is focused on being the ―world's premiere consumer products company. However. and the outlook for President‘s Choice is expansion and enlargement. vending machines. and Loblaw‘s (President‘s Choice. display all three cola brands side by side at eye level. businesses must pay attention to macro-environment factors in order to survive. convenience stores.. By having these products at eye level the competitors make it quite simple for the consumer to find and purchase their products. . by existing in an open system. Finally. However. For the most part. policies. the outlook for President‘s Choice is on expanding its operations through the acquisition of locations in various provinces to establish ―enlarged stores of sufficient size to accommodate an expanded array of non-food products. both products occupy a great deal of shelf space that is relatively at eye level. Corporate Information) whereas Coca-Cola‘s focus is on ―system profitability and capability. where President‘s Choice products are sold. the three brands can be found in a variety of places throughout Canada. However. Both Pepsi and Coca-Cola distribute their products to supermarkets. it is each company‘s focus on better serving its customer base and an effort placed on growth. Some grocery stores display these products at a large distance from one other.‖ (PepsiCo. franchise stores. Corporate Information – 2001 Annual Report). there are various nuances among each of the strategic plans. 2002). Extra Foods.locations for soft drinks becomes an important issue for attracting more sales volumes. Observation analysis has concluded that at locations where just Pepsi and Coca-Cola compete. if each competitor had no external factors affecting their decisions. President‘s Choice colas are only sold in Canadian grocery stores that have an affiliation with Loblaw Ltd. and cold vaults (Cherkassky. 2002. Strategic planning would be a fairly simple task of setting goals. we can conclude that Pepsi centers its future position on satisfying the customer. Other grocery stores such as Superstore.
such as high levels of pesticides in the developing world and alleged use of paramilitary squads in South America.CRITICISMS The Coca-Cola Company has been criticized for its business practices. critics also claim its flagship product has adverse health effects and is aggressively marketed . .
the paper emphasizes certain other factors that need to be considered. Among these factors are political uncertainties. bureaucratic hurdles. . With our experience. So it‗s up to you weather you choose Coca Cola or not. marketer. The paper presents the case of Coca-Cola India. consumption of carbonates still considered to be an issue of debate. even though central government did not issue any immediate enquiry. Even after 2007. paper describes the course of action that can help other companies to avoid the type of dilemma. There are certain practices and strategies which could help companies to avoid this type of situation and multinationals can continue to have long term promising future growth even after the presence of NGOs and other types of business risks in an environment of political uncertainty. and distributor of non-alcoholic beverage concentrates and syrups. used to produce nearly 400 beverage brands. The paper discusses various controversies including pesticide issue that NGO raised in 2003 and with the immediate effect. From the small beginning till our day‘s customers are the reason the company exists for. Coca Cola India faced. various NGOs and effect on local stakeholders. In the last section. position and great ideas Coca-Cola Company continues to be the most leading company in the world. But with the growth of economy and industry. Coca-Cola‘s image was severely damaged and sales volume was badly affected. Although Coca Cola was able to boost its sale by 13% in the first quarter of 2008 yet these statistics are much lower than actual sales projections. the company which was on the heels of promising future growth and was very well utilizing its global brand name to gain market share in Indian emerging market. One institutional void was the difference between European standards and Indian standards (finalized but yet to be implemented) which played an important role to restrict the growth of Coca-Cola in spite of its promising future projections. The paper presents the business dilemma that Coca-Cola India faced to regain its image and trust in Indian market.CONCLUSION The Coca-Cola Company exists to benefit and refresh everyone it touches. Our Company being the world's leading manufacturer. Its long term strategy was very much aligned with promising future growth of Indian economy and soft drink industry. several states banned the sale of Coca-Cola due to strong hold of regional parties and anti globalization NGOs.
com www.google. Business today on coca cola.cocacola. philip kotler.businessdictionary.BIBLIOGRAPHY WEBSITES: www.13th edition .com BOOKS AND JOURNALS Marketing management .encyclopedia.com www.zeenews.com www. .com www.