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BBM-5 Group 8

which Availability are listed on the side of the bottle or can) is a trade secret Affordability World’s largest carbonated drinks company Acceptability Coca-Cola India Pvt Ltd. is a subsidiary of Atlanta based The Coca-Cola Company Activation Philosophy: To create a symbiotic relationship of Demand Creation and Demand Fulfilment Attitude Offering: wide range of juice and juice drinks and aerated beverages . is a carbonated soft drink produced by The Coca-Cola Company The exact formula of Coca-Cola's natural flavorings (but not its other ingredients.COKE About Excellence in Market Place Execution Coke.Current Product.

Zico Profit by over 40% (packaged coconut water) for the past couple of years Gained 8% share swing against Pepsico in sparkling  t announced in 2012 that it will invest $5 billion in drink division .9% market share Coca-Cola and PepsiCo control around 80% of the soft drink market In the past four years:  Coca-Cola has been increasing focus on non- Volume grew by 176 million unit cases carbonated beverages like Vio (milk-based). India by 2020 for capacity enhancement among other things Launched multiple new products and categories . 1753 Cr 60. 474 Cr  Revenue FY 16= Rs.000 Cr  Profits FY 16= Rs.Market Share & Growth Potential Growth Potential ~35% market share  Carbonated Drinks Market= worth Rs 14.

• Associated with hip/cool image.Product Offering Coke.Offering What Does Coke Look Like? • Carbonated cola flavoured soft drink • Available in a number of forms including • Instantly recognisable iconic Red & White Original.500 product mix plastic bottles • High quality consistent taste across all lines . (Higher sugar in US) • Flavours added to expand product to more individuals and enhance their perception . Diet. total of 3. produced in Coca-Cola owned factory to ensure total quality management Product Differentiation • Different tastes in different markets. Zero logo • Coca Cola has more than 400 different • Glass bottles developing to cans and then products line.

well.Target Market & Value Proposition Convenience . .defined. market segment • It develops a marketing mix for each of the segments.easy to access and enjoy on the go Uninterrupted supply Timely distribution Taste-Flavoursome drink that will satisfy taste needs Constant availability Popularity-Will fit in with personal Support from the supplier image Considerable Price margin Reliability-Consistently reliable flavour that never fails to deliver a superior taste Long term relations Targeting Strategy • Coca Cola uses "Multisegment" targeting strategy which means that the company has more than single.

85 commercial airports. Hence. a premium product like Coke Gold.Business Model & Financial Viability 9% Retailer Margin 2100 Total number of multiplexes in India 35% Margin from Institutions 85 Commercial Airports with premium outlets Handling charge in rupees per 22-26 CAGR of bars ( visited also by case of distributor 5% teetotalers) Consumer foodservice market in India In case of a ban on differential pricing retailers lose out on the opportunity to encash margins from those willing to pay premium prices For Coke the market size is huge comprising 2100 multiplexes. corporate food hubs & bars. . or coke mocktail can rake in profits given the market size.

airports.STRATEGY Targeting & Marketing Pricing & Promotions & Positioning Research & Distribution Content Marketing Strategy Product Strategy Strategy Strategy Premium Customers Market Research should be conducted on At present a cold drink is Most multiplexes in like Malls. Margins need extra) to be maintained gauge their willingness to pay For Restaurants it can Promotions should revolve around creating We suggest to keep the leverage on the fact the creative cocktails & Product could be prices at par or reduce given product could help mocktails at high end differentiated in terms marginally to retain the to sustain some prices for HNI of it’s taste. Corporate. bars. beverage to 3rd parties at end Restaurants outlets charging differential prices to priced Rs 50 (30 Rs high cost. Airports. packaging premium factor percentage of the margin customers and also variants lost to new legislation From the B2B aspect of Coke. IT priced at around Rs 120 particular outsource food Hubs. High customers visiting whereas a water bottle . audience could invoke posh areas of tier 1 sold to lounges & content marketing cities. premium bars . stories based on themes upscale outlets in tier 2 ultimate mock tail for related to this niche corporate & high end cities or basic outlets in teetotalers which can be restaurants. niche strategy would be applicable& In terms of variants it Distribution would to Creation of compelling sales should only be can be positioned as the malls.

Prices of Coca-Cola cans have gone up to Rs 100 from Rs 70 even across DT Cinemas and airlines such as IndiGo which are exclusive Coca- Cola accounts . It is often practised to maintain parity with the price charged for other products in the same or similar channels such as airlines. restaurants and cinemas until now • Relevant trends : The only requirement under law is that the MRP be declared on every package. CURRENT MARKET SITUATION • Overall market condition : The differential MRP was earlier legally permitted under law and was not restricted to one brand or products.

Flipkart. it’s aimed at consumers pulled towards buying the mark-up interested in natural products) priced products How similar products are distributed in industry : Pepsi. they are stevia. Amazon also follow differential pricing/dual pricing . • Diet Coke (aimed at women). airports and some public malls • Coke Zero (aimed at men).ENVIRONMENTAL PARAMETERS Indicators used to determine market Segments potential : Because of security reasons in places like movie theatres. and bringing food and beverages are not • Coke Life (made with sugar and allowed for customers. Red Bull. Eureka Forbes.


Consumers need to believe that their favourite beverage is worth paying for. a good part of money they collect from selling movie ticket goes to the movie producer and with the rest they can't even pay the electricity bills. advertisements. • Organizational behaviour within the industry :these place don't sell any packaged product. CONSUMER SITUATION • General trends in b2b org : : the multiplex profit comes mostly through sale of food and beverages. so there is no question of MRP. . profit comes from sale of food. That is why they have to charge such a huge rate for their counter sales. • Current perceptual positions of the current product offerings: Currently people find the price of Coca-Cola at these places as very costly and not worthy • Needs of this community: Creative content and consumer connect promotion strategies can convince the added benefits of the higher pricing.. if they are selling coke. Same for pop corn and nachos and other eatables. they don’t sell by bottles. beverage. rent etc. they put in their fancy glass and serve.


Coca Cola has invested over $1 billion and employs over 5. juice based products .• Till date. shopping malls .corporate institions • B2B segment will account for 30% by 2022 and is therefore of strategic importance • Growth in demand for coke zero.000 people • It sells around Rs 8500 crores worth of products in the carbonated category B2B Scenario • B2b segment accounts for 20% share of total sales which consists of mainly institutional buyers like multiplexes.

FDI. after the 2019 elections. However. though it’ll likely be  Automation in supply chain and well as regulations on waste disposal. past year. growth of the B2B segment (i. delayed till at least 2020.PESTEL Analysis Political Factors Economic Factors Social Factors  Relatively stable political climate  The economy is expected to grow at  India has more than 50% of its with the current ruling party the current pace of 6-8% (supported population below the age of 25 expected to remain in power for by relatively low interest rate and more than 65% below the age at least the next 7 years. which monetary policies) for the next couple of 35. of years. has made liberalizing trade. compared to 37 for rise in populist policies in the  Since the core of the economic China and 48 for Japan. . that the economy is susceptible to  A much more socially liberal privatization and ease of crash. signals consistency in policies. especially in the top 2-3% of the  The current government is tilted Indian businesses to International population which is seeing towards free market policies and businesses). It is expected that. in 2020. it’s unlikely that the culture through globalization. distribution.e. many experts believe dramatic growth in their income. be 29 years. pressure groups on environmentalism as consideration.  It’ll be easier to litigate IPR related issues once National Intellectual Property Rights Policy is ratified.  Changing attitude towards sustainability. it’s expected to reduce growth is dependent on mainly the  Rising disposable income. barring an unexpected the average age of an Indian will Though there has been a slight external event. business some of its primary crash would be so severe as to result concerns.  A labour reform bill is under access. in a recession. Technological Factors Environmental Factors Legal Factors  Widespread growth in internet  Establishment of noise controls.

PepsiCo will likely follow. Sugar Tax) opportunities  Customers’ changing  Changing demographics preferences. It’s expected that if Coke targets the retailers with premium products. It enjoys lesser brand equity relative to Coke. But the higher brand equity means for Coke means that will likely acquire higher market share.SWOT Analysis  Outstanding brand  Negative publicity equityStrenght Weakness Many brands with  Most extensive beverage insignificant amount of S distribution channel revenues  Customer loyalty  Over-reliance on  Strong advertising and marketing presence  . This is evident in the net profit margins of both the companies. . PepsiCo has a very similar SWOT profile but with one major difference. away from  Sustainability carbonated drinks  Increasing demand for healthy food & beverages. PepsiCo consistently has a lower net profit margin with both retailers and consumers. W carbonated drinks  GovernmentThread T O policies (Ex: End of differential Opportunities  New premium product pricing.

Targeting and Positioning strategy • In-house development of recipes for cock tails and mock tails • Training program with partnership with bar owners • Statistical study of upscale outlets in tier 2 cities and outlets in tier-1 cities Marketing Research and Product strategy • Willingness to pay can be studied by taking up samples from multiplexes by calculating the percentage of people who bought the product at different price points for a Action Programs particular show extending this for multiple shows and doing statistical analysis of the samples taken • Statistical analysis of taste differentiated products should be done • Proper coaching of bar-tenders should be conducted free of cost for the developed recipes and revenue sharing model should be discussed with the bar owners .

Pricing and distribution Strategy • Increase in price for institutional buyers by at least 20 percent with deals of advertisements based on theme of customers buying at these institutions in the offering in return • Differentiation in taste to compensate for the premium charged • Distribution will be taken care of by Coca cola Promotions & Content Marketing Strategy • Revenue sharing model should be imlmented with these 3rd parties who have lesser bargaining power • Legal cost should be accounted while taking total cost into consideration and margin should be based on the total cost • Leverage on the fact that the promotion imbibes a sense of happiness of the ocassion in relation to the institution in which the product is being sold .