group coca cola

8/10/2019 Group Coca Cola

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Marketing Project Submitted by:

Shrinivas Gotety69

Divya Kudva75

Nibha Chandrashekar83

Aparna Pai110

Rafiya Mukadam111

Sandeep Nair114


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Table of Contents

Sr.No. Topics Page No.

1. About the Company 5-6

2. Product 7-15

3. Place 16-17

4. Pricing and Packaging 18

5. Promotion 19-20

6. SWOT Analysis 21-22

7. Product Life Cycle 23-24

8. Segmentation 24-25

9. Targeting 26

10. Positioning 27-28

11. Competitor Analysis 29-31

12. Financial Report 32

13. Future: Mission and Vision 33-34

14. Bibliography 35


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ACKNOWLEDGEMENT

We wish to express our deep gratitude towards all the persons who contributed for this

project and helped develop ideas and approach in report writing.

We are grateful to Professor VIKRAM PAREKH, Faculty of subject Marketing Management,

MMS-I, SIESCOMS, Nerul for his guidance throughout our project work.

We would like to thank Prof. Dr. SNV SIVA KUMAR, the director of SIES College of

management studies, Nerul, Navi Mumbai for his kind permission to carry on our project

work and his cooperation.

Last but not the least we would like to thanks all our college friends for theirencouragement and support.


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ABOUT THE COMPANY

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola

Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and

beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely,

Hindustan Coca-Cola Beverages Pvt Ltd; thirteen authorized bottling partners of The Coca-

Cola Company, who are authorized to prepare, package, sell and distribute beverages under

certain specified trademarks of The Coca-Cola Company; and an extensive distribution

system comprising of our customers, distributors and retailers. Coca-Cola India Private

Limited sells concentrate and beverage bases to authorized bottlers who are authorized to

use these to produce our portfolio of beverages. These authorized bottlers independently

develop local markets and distribute beverages to grocers, small retailers, supermarkets,

restaurants and numerous other businesses. In turn, these customers make our beverages

available to consumers across India.

It includes over 7,000 Indian distributors and more than 1.3 million retailers. Today, our

brands are the leading brands in most beverage segments. The Coca-Cola Companys brands

in India include Coca-Cola, Fanta Orange, Fanta Apple, Limca, Sprite, Thums Up, Burn,

Kinley, Maaza, Maaza Milky Delite, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh

and Nestea Iced tea, the Georgia Gold range of teas and coffees and Vitingo (a beverage

fortified with micro-nutrients).

The Coca-Cola Company has invested nearly USD 1.1 billion in its operations in India since its

re-entry back into India in 1992. The Coca-Cola system in India directly employs over 25,000

people including those on contract. The system has created indirect employment for more

than 1,50,000 people in related industries through its vast procurement, supply and

distribution system. We strive to ensure that our work environment is safe and inclusive and

that there are plentiful opportunities for our people in India and across the world.

The beverage industry is a major driver of economic growth. A National Council of Applied

Economic Research (NCAER) study on the carbonated soft-drink industry indicates that thisindustry has an output multiplier effect of 2.1. This means that if one unit of output of

beverage is increased, the direct and indirect effect on the economy will be twice of that. In

terms of employment, the NCAER study notes that an extra production of 1000 cases

generates an extra employment of 410 man days.

As a Company, our products are an integral part of the micro economy particularly in small

towns and villages, contributing to creation of jobs and growth in GDP. Coca-Cola in India is

amongst the largest domestic buyers of certain agricultural products.

As an industry which has strong backward and forward linkages, our operations catalysis

growth in demand for products like glass, plastic, refrigeration, transportation, andIndustrial and agricultural products. Our operations also lead to incremental growth for


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enterprises engaged in post production activities like merchandising, marketing and sales. In

addition, we share best practices and technological advancements with our suppliers,

vendors and allied industries which often lead to improvement in the overall standards of

quality across industries.

The Coca-Cola Company has always placed high value on good citizenship. Our basic

proposition entails that our Companys business should refresh the market; enrich the

workplace; protect and preserve the environment; and strengthen the community. We

leverage our unique strengths to actively support and respond to local needs -- be it the

need for education, health, water or nutrition. We have used our distribution network for

disaster relief, our marketing prowess to raise awareness on issues such as PET recycling,

and our presence in communities to improve access to education and potable water. The

Coca-Cola India Foundation is now taking forward in the community at large, projects and

programs of social relevance to carry forward the message of inclusive growth and

development.

At the core of our business in India, as in the rest of the world is our production and

distribution network, which we call the Coca-Cola system. Globally, the Coca-Cola system

includes our Company and more than 300 bottling partners. The Coca-Cola Company

manufactures and sells concentrate and beverage bases. Our authorized bottlers combine

our concentrate or beverage bases as the case may be with sweetener (depending on the

product), water or carbonated water to produce finished beverages. These finished

beverages are packaged in authorized containers bearing our trademarks -- such as cans,

refillable glass bottles, non-refillable PET bottles and tetra packs -- and are then sold to

wholesalers or retailers. In India, additionally, the Company also sells certain powdered

beverage mixes such as Vitingo and Fanta Fun Taste.Our beverages reach our ultimate consumers through our customers: the grocers, small

retailers, hypermarkets, restaurants, convenience stores and millions of other businesses

that are the final points of distribution in the Coca-Cola system. What truly defines the Coca-

Cola system, and indeed what makes it unique among businesses, is our ability to create

value for our customers and consumers.

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola

Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and

beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely,

Hindustan Coca-Cola Beverages Pvt Ltd; thirteen authorized bottling partners of The Coca-

Cola Company, who are authorized to prepare, package, sell and distribute beverages undercertain specified trademarks of The Coca-Cola Company; and an extensive distribution

system comprising of our customers, distributors and retailers. Coca-Cola India Private

Limited sells concentrate and beverage bases to authorized bottlers who are authorized to

use these to produce our portfolio of beverages. These authorized bottlers independently

develop local markets and distribute beverages to grocers, small retailers, supermarkets,

restaurants and numerous other businesses. In turn, these customers make our beverages

available to consumers across India.


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Product

Coca colaThumps up

Spirit

Limca

Fanta

Maaza

Minute maid pulpy orange

Minute maid nimbu fresh

Kinley water

Kinley soda

COCA COLA

Description:Coca-cola has a truly remarkable heritage. From a humble beginning in 1886,

it's now the flagship brand of the largest manufacturer, marketer and distributor of non

alcoholic beverages in the world.

NUTRITIONAL FACTS

Typical values per 100ml

Energy 44kcal

Sugar 11g

Carbohydrate 11g

Protein 0g

Fat 0g


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Packaging

RGB 200ml,300ml,330ml

PET 350ml,400ml,500ml,

600ml,1250ml,1500ml,2000ml,2250ml

Fountain glass various size

Cans 300ml,330ml

Diet coke

Description:Diet Coke is for those who want plenty of taste but no calories. Diet coke is also

known as Coke light in some countries

NUTRITIONAL FACTS


Energy 0.2kcal

Sugar 0g

Carbohydrate 0g

Protein 0g

Fat 0g

Packaging

Pet 300ml,500ml

Can 300ml,330ml

Thumps Up

Description:Thumps Up is known for its strong, fizzy taste and its confident, mature anduniquely masculine attitude. This brand clearly seeks to separate the men from the boys.

NUTRITIONAL FACTS


Energy 40kcal

Sugar 10g

Carbohydrate 10g

Protein 0g

Fat 0g


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Packaging

Cans 300ml,330ml

RGB 200ml,300ml

PET 350ml,400ml,

600ml,1250ml,2000ml2250ml

Fountain glass various sizes

Sprite

Description:Sprite is the brand that gained most share in sparkling beverages in year

2010.Present in over 130 countries worldwide. In India sprite is the second largest brand of

soft drinks.

NUTRITIONAL FACTS


Energy 48kcal

Sugar 12g

Carbohydrate 12g

Protein 0g

Fat 0g

Packaging

Cans 300ml,330ml


PET 350ml,400ml,

500ml,600ml,1250ml,

1500ml,2000ml2250ml



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Fanta

Description:Fanta the 'orange' drink

Over the years Fanta has occupied a strong market place and is identified as the "The Fun

Catalyst".

NUTRITIONAL VALUE:


Energy 52kcal

Sugar 13g

Carbohydrate 13g

Protein 0g

Fat 0g

Packaging

Cans 300ml,330ml


PET 350ml,400ml,

500ml,600ml,1250ml,

1500ml,2000ml2250ml


Limca

Description:Limca's freshness is like no other- 'lime n lemoni'

Lime 'n' lemoni Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from

'Nimbu' + 'jaisa' hence Lime Sa, Limca has lived up to its promise of refreshment and has

been the original thirst choice of millions of consumers for over 3 decade.

NUTRITIONAL FACTS


Energy 44kcal

Sugar 11g

Carbohydrate 11g

Protein 0g

Fat 0g


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Packaging

Cans 300ml,330ml


PET 350ml,400ml,

500ml,600ml,1250ml,1500ml,2000ml2250ml


Maaza

Description:Maazathe wholesome family fun

Mango. Imagine this delicious fruit, bottled. This is what Maaza is all about. Maaza- the

most loved beverage brand in India. It provides the most authentic experience of rich, juicy

mangoesanytime, anywhere!

NUTRITIONAL FACTS


Energy 54kcal

Sugar 13.5g

Carbohydrate 13gProtein 0g

Fat 0g

Packaging

RGB 200ml,250ml

PET 250ml,400ml,600ml,1.21L

Pocket Pack 200ml


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Minute maid pulpy orange

Description:Refreshingly Orange Surprisingly Pulpy!

Minute Maidone of the world's largest juice and juice drink brands.

NUTRITIONAL FACTS


Energy 42kcal

Sugar 10.5g

Carbohydrate 9g

Protein 0g

Fat 0g

Packaging

PET 400ml, 1L,1.2L


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Minute maid nimbu fresh

Description:Just Like Home-made Lemonade

A lemon drink with no added preservative or colour, Minute Maid Nimbu Fresh offers a

refreshing drinking experience as close to homemade Nimbu Paani as possible in a packagedformat. Nostalgia in a bottle, Minute Maid Nimbu Fresh offers 'Ghar Ki Yaadon Ka Ras'

(memories of home-made lemonade) in every sip.

NUTRITIONAL FACTS


Energy 48kcal

Sugar 12g

Carbohydrate 11.7g

Protein 0g

Fat 0g

Packaging

RGB 200ml

PET 400ml,1L

Tetra pack 200ml


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Kinley water

Description:Water you can trust and be truly safe and pure.

Kinley water understands the importance and value of this life giving force. Kinley water

thus promises water that is as pure as it is meant to be.

NUTRITIONAL FACTS


Energy 0kcal

Sugar 0g

Carbohydrate 0g

Protein 0g

Fat 0g

Sodium 0.3mg

Magnesium 0.1mg

Packaging

PET 500ml,1000ml,2l,20l,25l


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Kinley soda

Description:India's no.1 National Soda brand.

With its unique taste and formula Kinley Soda packs quite a punch

NUTRITIONAL FACTS


Energy 44kcal

Sugar 11g

Carbohydrate 11g

Protein 0g

Fat 0g

Sodium 0.3mg

Magnesium 0.1mgPackaging

RGB 200ml,300ml

PET 350ml,500ml,1.25l,1.5l,2l


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Place

The Place in the marketing mix refers to distribution of the product-the ways of getting the

product to the market. The distribution of products starts with the producer and ends withthe consumer. One key element of the Place aspect is the respective distribution channels

that Coca Cola has selected to transport and sell its product. Selecting the most appropriate

distribution channel is important, as the choice will determine sales levels and costs. The

choice for a distribution channel for any business depends on numerous factors, these

include:

>How far away the customers are;

>The type of product being transported;

>The lead times required; and;

>The costs associated with transport;

There are four types of distribution strategies that Coca Cola could have chosen from, these

are: intensive, selective, exclusive and direct distribution.

The Coca-Cola Company uses intermediaries (wholesalers and retailers) in its distribution.

That is, the company does not sell its products directly to its consumers. It is apparent from

the popularity of Coca Colas product in the market that the business uses the method of

intensive distribution as the product is available at every possible outlet. From supermarkets

to retail outlets, smallshops, restaurants, petrolstations, schools, sports and entertainment

venues & from vending machines. Coca Cola has made its products available in all markets

be it Rural or Urban.

It has a wide and well managed network of salesmen appointed for taking up the

responsibility of distribution of products to diverse parts of the c i t i e s . T h e d i s t r i b u t i o n

channels are constructed in such a way that the demand of customers is

fulfilled at the right place and the right time when it is needed by them.

A typical distribution chain at Coca Cola would be:

Production---Plant Warehouse---Depot Warehouse---Distribution Warehouse---Retail Stock ---Retail

Shelf ---Consumer


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The customers of the Company are divided into different categories and different routes,

and every salesman is assigned to one particular route, w h i c h i s t o b e f o l l o w e d

b y h i m o n a d a i l y b a s i s . A d e t a i l e d a n d w e l l organized distribution

system contributes to the efficiency of the salesmen. It also leads to low costs, higher sales

and higher efficiency thereby leading to higher profits to the firm.

DISTRIBUTION ROUTES

The various routes formulated for distribution of products are as follows:

K e y A c c o u n t s :

The customers in this category collectively contribute a large chunk of the total sales of the

Company. It basically consists of organizations that buy large quantities of a

product in one single transaction. The Company provides goods to these customers on

credit, payments being made by them after a certain period of time i.e. either a

month of half a month.

Examples:

Clubs, fine di ne restaurants, hotels, Corpo rate houses etc.

Future Consumption:

This route consists of outlets of Coca-Cola products, wherein a considerable amount of stock

is kept in order to use for future consumption. The stock does not exhaust within a day or

two, instead as and when required stocks are stacked up by them so as to avoid shortage or

non-availability of the product.

Examples:

Departmental stores, Super markets etc.

Immediate Consumption:

The outlets in this route are those which require stocks on a daily basis. The

stocks of products in these outlets are not stored for future use instead, are

exhausted on the same day and might run a little into the next day i.e. the products are

consumed at a fast pace.

Examples:

Sm al l s iz ed ba rs an d re st aur ant s, ed uc at io na l institutions etc.

General:

Under this route, all the outlets that come in a particular area or an area along with its

neighbouring areas are catered to. The consumption period is not taken into consideration

in this particular route.


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Price and Packaging

Coca Cola products come in the following packages:

SSRB (Standard size returnable bottle)

LRB (Large size returnable bottle)

NRD (Non-returnable/ Disposable bottle)

PET (Plastic Bottle 500 ml)

PET (Plastic Bottle 1.5/ 2 litre)

CANS (tin pack 330 ml)

As a restatement of a brand's positioning strategy, a brand's core benefit proposition

suggests what pricing strategy it should use. If it's offering more "benefit," then a price

skimming strategy (relative to its closest competitor) makes sense; if it's offering more

"value," then a price penetration strategy would be most appropriate.

In a vast country like India, distribution and storage has been an issue. Prior to 1993, it

wasn't just distribution and refrigeration issues that caused Coca-Cola to stumble in India.

The company also erred in adopting the low price-point strategy that many other foreign

consumer-goods companies were using at the time to sell their products in rural India. What

the people actually wanted were good quality products at a reasonable price. About seven

years ago, Coca-Cola set out to woo rural consumers by halving the price of a 200-milliliter

(seven-ounce) bottle to Rs. 5 (11 cents) which was a "psychological price point. A price war

erupted as rival PepsiCo matched the Rs. 5 price. Both firms have since dropped the

strategy, however, and let prices for their 200-ml sodas rise up to around Rs. 8. However,

soft drinks that come in a glass bottle have to be returned to bottling plants, and no

mechanism can provide such drinks at a cheap cost due to freight charges. They then looked

at alternative packaging and how to organize distribution. Like many consumer packaged

goods companies, Coke has been offering its products in smaller packages as a way to

flatten prices. Rival PepsiCo, which also sells food and snacks, has said it faces cost inflation

of 8 to 9.5 per cent this year but that it would not pass all of that on to consumers.

In its latest quarter, Cokes revenues rose 40 per cent to $10.5bn, with its relatively low

prices keeping volumes strong.


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Promotion

Advertisement Strategy

Coke realised that the communication media used in cities and urban areas would

not work in villages because of low penetration of conventional media.

Coca Cola India also launched television commercials (TVCs) targeted at rural

consumers. In orders to reach more rural consumers, Coca Cola India increased its

ad-spend on Doordarshan.

The company ensured that all its rural marketing initiatives were well-supported by

TVCs.

When Coca Cola launched Chota Coke in 2002 price at Rs. 5, it bought out acommercial featuring Bollywood actor Aamir Khan to communicate the messages of

the price cut and the launch of 200 ml bottles to the rural consumers.

The commercial was shot in a rural setting.

In the summer of 2003, Coca Cola India came up with a new commercial featuring

Aamir Khan, to further strengthen the Coca Cola brand image among rural

consumers.

The commercial aimed at making coke a generic name for Thanda. Of the reason

for picking up the word Thanda, Prasoon Joshi, national creative director McCann

Erickson, the creator of the commercial had a view that Thanda is a very North India-centric phenomenon and any restaurant in the north and the attendants would

promptly ask, thanda ya garam?

Between March and September 2003, Coca Cola India launched three commercials

with the Thanda Matlab Coca-Cola tag line.

All the three commercials aimed to make rural and semi-urban consumers connect

with Coca-Cola.

The first ad featured Aamir Khan as a tapori (street smart); in the ad he makes the

association between Coca-Cola and the word Thanda.

The second commercial in the series featured Aamir Khan as a Hyderabadi shop-keeper; here again he equates the word Thanda with Coca-Cola.

The third commercial featured Aamir Khan as a Punjabi Farmer who offers Coca

Cola to ladies asking for Thanda.

Thanda usually means lassi or nimbu pani, garam is essentially tea. Because the

character, in itself, represented a culture, they wanted to equate Coke with

Thanda, since Thanda too is part of the popular dialect of the north.

Thus making Thanda generis for Coca-Cola, with the long-playing possibilities of the

Thanda idea becoming evident, thanda became the central idea. Once we decided

to work on that idea, in the creative mind just opened up.


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Open Happiness is a global marketing campaign for The Coca-Cola Company that was

rolled out worldwide in the first half of 2009, following the company's "Coke Side of

Life" advertising campaign.

Brrrr campaign by actor Imran khan talked of the happy energy and happy

refreshment, the expression of having an icy cold Coca-Cola. But it apparently didnot connect well with the viewers.

The commercial called 'Khushiyaan Baatne Se Hi Badhti Hain' or 'Do diye aur jalao'

and it happens to be the latest campaign from Coke's ad vending machine to hit our

telly screens.

Celebrating the joy of sharing and spreading happiness, Coca-Cola has launched its

new integrated communication initiative - "Khushiyan Baatne Se Hi Badhti Hain", this

Diwali. The campaign builds on the values of inclusivity, spreading and extending

happiness that India as a society revels in and something that brand Coca-Cola has

always been a proponent of. The theme of the Diwali campaign is that 'Happiness

just becomes bigger when you extend it to others, making the sphere of happiness

larger and it lights up everything around you.' To further amplify the campaign,

Coca-Cola has tied up with Ra.Onetrough an interesting consumer promotion where

consumers are invited to call and respond to the question - Who will you light 2

diyas for, this Diwali?through an Interactive Voice Response System (IVRS). 25

Lucky respondents chosen through a computer generated luck draw will win a

chance to meet, the leading star of Ra.One, Shah Rukh Khan.

The Coca-Cola Television Campaign for Diwali 2011 portrays how a group of friends

set out to brighten up spaces that are most dear to them with diyas, thereby

spreading happiness. The movement to spread the happiness is contributed by each

of the friends lighting diyas in memory of special moment in a particular place like

their classroom, the girl's hostel watchman, canteen table etc. The soulful

background score further adds to the positivity and celebratory spirit.

Coca cola has a huge fan following all over the world. It uses various social

networking sites to advertise. On facebook, a famous social networking site, one can

see the logo of coca cola on their home page at times. They have also created a

facebook page for coca cola which is liked by more than 35,953,224 people all

over the world till date.

There are also pages called I hate coke which also in a way help in negative

marketing.


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SWOT Analysis

SWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a technique

much used in much general management as well as marketing scenarios. SWOT consists of

examining the current activities of the organization- its Strengths and Weakness- and then

using this and external research data to set out the Opportunities and Threats that exist.

Strengths:

Coca-Cola has been a complex part of world culture for a very long time. The product's

image is loaded with over-romanticizing, and this is an image many people have taken

deeply to heart.

The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This

extremely recognizable branding is one of Coca-Cola's greatest strengths. "Enjoyed more

than 685 million times a day around the world Coca-Cola stands as a simple, yet powerful

symbol of quality and enjoyment" (Allen, 1995).

Additionally, Coca-Cola's bottling system is one of their greatest strengths. It allows them to

conduct business on a global scale while at the same time maintain a local approach. The

bottling companies are locally owned and operated by independent business people who

are authorized to sell products of the Coca-Cola Company. Because Coke does not have

outright ownership of its bottling network, its main source of revenue is the sale of

concentrate to its bottlers.

Weaknesses:

Weaknesses for any business need to be both minimized and monitored in order to

effectively achieve productivity and efficiency in their businesss activities, Coke is no

exception. Although domestic business as well as many international markets are thriving

(volumes in Latin America were up 12%), Coca-Cola has recently reported some "declines in

unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power."

According to an article in Fortune magazine, "In Japan, unit case sales fell 3% in the second

quarter [of 1998]...scary because while Japan generates around 5% of worldwide volume, it

contributes three times as much to profits.


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Latin America, Southeast Asia, and Japan account for about 35% of Coke's volume and none

of these markets are performing to expectation.

Coca-Cola on the other side has effects on the teeth which is an issue for health care. It also

has got sugar by which continuous drinking of Coca-Cola may cause health problems. Being

26 addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has

an effect on your body after few years.

Opportunities:

Brand recognition is the significant factor affecting Coke's competitive position. Coca-Cola's

brand name is known well throughout 94% of the world today. The primary concern over

the past few years has been to get this name brand to be even better known. Packaging

changes have also affected sales and industry positioning, but in general, the public has

tended not to be affected by new products. Coca-Cola's bottling system also allows the

company to take advantage of infinite growth opportunities around the world. This strategy

gives Coke the opportunity to service a large geographic, diverse area.

Threats:

Currently, the threat of new viable competitors in the carbonated soft drink industry is not

very substantial. The threat of substitutes, however, is a very real threat. The soft drink

industry is very strong, but consumers are not necessarily married to it. Possible substitutes

that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and

hot chocolate. Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage

market, the changing health-consciousness of the market could have a serious affect. Of

course, both Coke and Pepsi have already diversified into these markets, allowing them to

have further significant market shares and offset any losses incurred due to fluctuations in

the market.

Consumer buying power also represents a key threat in the industry. 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. Furthermore, consumers can easily switch to other

beverages with little cost or consequence.


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Product Life cycle

When referring to each and every product or service ever placed before the consumer i.e. inthe long term all the existing products and services are dead. For e.g.:- Replacement of Ford

Cortina (a highly successful car) by Ford Sierra, the replacement of sierra by the Ford

Mondeo and the replacement of the old Mondeo by the new Mondeo in 2001. So every

product is born, grows, matures and dies. So in the commercial market place products and

services are created, launched and withdrawn in a process known as Product Life Cycle.

To be able to market its product properly, a business must be aware of the product life cycle

of its product. The standard product life cycle tends to have five phases:

Development Introduction

Growth

Maturity

Decline

FIGURE: Product Life Cycle


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Coca-Cola is currently in the maturity stage, which is evidenced primarily by the fact that

they have a large, loyal group of stable customers.

Furthermore, cost management, product differentiation and marketing have become more

important as growth slows and market share becomes the key determinant of profitability.

In foreign markets the product life cycle is in more of a growth trend Coke's advantage in

this area is mainly due to its establishment strong branding and it is now able to use this

area of stable profitability to subsidize the domestic Cola Wars.

Segmentation

There are three broad ways which Coca Cola segments its market:

Coca cola product has been covering the entire demographic and economic variations in its

segmentation marketing schemes. Although segmentation has been done according to

different categories, they appear relevant only in the advertisements where each

advertisement is targeted at a specific segment.

With segmentation, the company aims at reduction in expenses, improvements in cash flow,

productivity, improved manufacturing quality and service delivery.

The segments it has hence chosen are:

-> Differentiated marketing: This is the major modus operandi of Coca cola while

segmenting the general population. Where they concentrated on not just one, but two or

more segments at once. Diet coke satisfies the weight consciousness, regular coke, sprite,

fanta the average human, coffee, iced tea etc. Each group of beverages satisfy a particulargroup of people but majority the average human. The Meri maa ke haath ka khana ads

where they combined the family segment with the youth segment.

-> Mass marketing: Where they ignore all the segments and go after the whole market with

one offer. By reaching the largest audience possible exposure to the product is maximized.

Television and print advertisements are used for the most part by Coca-cola for mass

marketing.


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-> Concentrated marketing: Concentrated marketing, where a product is marketed for a

very well defined and specific segment of the consumer populationis also practiced by the

company. Specific parts of the demography are targeted such as the teenage youth, the

family and young couples.


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Targeting

Think local, act local, is the mantra that Coca-Cola follows, with punchlines like

Lifeho to aisifor Urban India and ThandaMatlabCoca-ColaforRural India. Thisresulted in a 37% growth rate in rural India visa-vie 24%gr o w t h s e e n i n

u r b a n I n d i a . B e t w e e n 2 0 0 1 a n d 2 0 0 3 , t h e p e r c a p i t a consumption of

cold drinks doubled due to the launch of the new packagingof 200 ml returnable glass

bott les which were made avai lable at a price of Rs .5 pe r bo tt le . Th is ne w

m a r k e t a c c o u n t e d f o r o v e r 8 0 % o f I n d i a s n e w C o c a - C o l a d r i n k e r s . A t

Co ca -C ol a, th e y ha ve a lo ng st an di ng be li ef th at everyone who touches their

business should benefit, thereby inducing themt o u p h o l d t h e s e v a l u e s ,

e n a b l i n g t h e C o m p a n y t o a c h i e v e s u c c e s s , recognition and loyalty

worldwide.

Target market

Coca-cola: Targets all age groups

Diet coke: weight consciousness

Maaza: kids , juice loving people

Sprite: young people

Thums-up: confident, mature and people with

masculine attitude

Fanta: family


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Positioning

Once a business has decided which segments of the market it will compete in, developed a

clear picture of its target market and defined its product, the positioning strategy can be

developed. Positioning is the process of creating, the image the product holds in the mind of

consumers, relative to competing products. Coca Cola and Pepsi both make soft drinks,

although Pepsi may try to compete they will still be seen as down market from Coca Cola.

Positioning helps customers understand what is unique about the products when compared

with the competition. Coca Cola plan to further create positions that will give their products

the greatest advantage in their target markets. Coca Cola has been positioned based on the

process of positioning by direct comparison and have positioned their products to benefit

their target market. Most people create an image of a product by comparing it to another

product, thus evident through the famous battles between Coca-Cola and Pepsi products.

Brand Localization Strategy: The Two Indias

India A: Life ho to aisi

India A, the designation Coca-Cola gave to the market segment including metropolitan

areas and large towns, represented 4% of the countrys population.33 This segment soughtsocial bonding as a need and responded to inspirational messages, celebrating the benefits

of their increasing social and economic freedoms. Life ho to aisi, (life as it should be) was

the successful and relevant tagline found in Coca-Colas advertising to this audience.

India B: 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. India B included small towns and rural areas, comprising the other 96% of the

nations population. This segments primary need was out-of-home thirst-quenching and the

soft drink category was undifferentiated in the minds of rural consumers. Additionally, with

an average Coke costing Rs. 10 and an average days wages around Rs. 100, Coke was

perceived as a luxury that few could afford. In an effort to make the price point of Coke

within reach of this high-potential market, Coca-Cola launched the Accessibility Campaign,

introducing a new 200ml bottle, smaller than the traditional 300ml bottle found in urban

markets, and concurrently cutting the price in Rs. 5. This pricing strategy closed the gap

between Coke and basic refreshments like lemonade and tea, making soft drinks truly

accessible for the first time. At the same time, Coke invested in distribution infrastructure to


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effectively serve a disbursed population and doubled the number of retail outlets in rural

areas from 80,000 in 2001 to 160,000 in 2003, increasing market penetration from 13 to

25%. Cokes advertising and promotion strategy pulled the marketing plan together using

local language and idiomatic expressions. Thanda, meaning cool/cold is also generic for

cold beverages and gave Thanda Matlab Coca-Cola delicious multiple meanings. Literallytranslated to Coke means refreshment, the phrase directly addressed both the primary

need of this segment for cold refreshment while at the same time positioning Coke as a

Thandaor generic cold beverage just like tea, lassi, or lemonade. As a result of the Thanda

campaign, Coca-Cola wonAdvertiser of the Year and Campaign of the Year in 2003

Branding

It is often hard to say exactly why we buy one companys product over another. Companies

such as Nike and Adidas spend large amounts of money trying to win consumers away from

their competitors who make products that are very similar. The popularity of the brand is

often the deciding factor. Over the time Coca Cola has spent millions of dollars developing

and promoting their brand name, resulting in worldwide recognition. 'Coca-Cola' is the most

recognized trademark, recognized by 94% of the world's population and is the most widelyrecognized word after "OK". Coca Colas red and white colours and special writing are all

examples of worldwide trademarks.

There are a number of branding strategies: Generic brand strategy, Individual brand

strategy, Family brand strategy, Manufacturers brand strategy, Private brand strategy and

Hybrid brand strategy. Coca Cola utilizes the Individual brand strategy as Coca Colas major

products are given their own brand names e.g. Fanta, Sprite, Coca Cola etc although they

may be presented as different lines they operate under the name of Coca Cola.


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Competitors

Coca cola faces stiff competitors from Pepsi Co and Parle Agro in juices, bottled water as

well as sparkling beverages categories. Some other players include Kraft Foods, Dabur India

and Rasna International.

Sparkling Beverages:

Coca-cola

53%PepsiCo

43%

Parle Agro

and others

5%

Chart Title


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Water:

Pepsi Co.:

The major competition faced by Coca Cola International is Pepsi Co. PepsiCo is a world

leader in convenient foods and beverages, with revenues of about $27 billion and over

143,000 employees. PepsiCo brands are available in nearly 200 countries and territories.

PepsiCos product mix as of 2009 (based on worldwide net revenue) cons ists of 63 percent

foods, and 37 percent beverages. PepsiCo entered India in 1989 and in a short period of 20

years has grown into the largest and one of the fastest growing food & beverage business in

the country. PepsiCo Indias growth has been guided by PepsiCos global vision of

Performance with Purpose.

Products:

7up

Mirinda

Pepsi

Mountain Dew

Aquafina

Tropicana

Slice

Parle Bisleri

40%

Coca-cola

(Kinley)

25%PepsiCo

( Aquafina )

10%

Others

25%

bottled water


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Parle Agro:

Parle Agro is an Rs 950 crore FMCG company with brands like Bailley and Frooti, is aiming

at a turnover of more than Rs 3,500 crore by 2012. Parle Agro commenced operations in

1984. It started with beverages, and later diversified into bottled water (1993), plastic

packaging (1996) and confectionary (2007). Frooti, the first product rolled out of Parle Agro

in 1985, became the largest selling mango drink in India. They are one of the biggest

companies in this sector with an annual turnover of Rs.10 billion that is expected to touch

Rs.30 billion.

Products:

Frooti

Appy Fizz

Bisleri

Bailley


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Financial statement of coca cola

Period Ending 31-Dec-10 31-Dec-09 31-Dec-08

Total Revenue 35,119,000 30,990,000 31,944,000

Cost of Revenue 12,693,000 11,088,000 11,374,000

Gross Profit 22,426,000 19,902,000 20,570,000

Operating Expenses

Research Development - - -

Selling General and Administrative 13,977,000 11,671,000 11,774,000

Non Recurring - - 350,000

Others - - -

Total Operating Expenses - - -

Operating Income or Loss 8,449,000 8,231,000 8,446,000

Income from Continuing Operations

Total Other Income/Expenses Net 5,502,000 289,000 305,000

Earnings Before Interest And Taxes 14,976,000 9,301,000 7,877,000

Interest Expense 733,000 355,000 438,000

Income Before Tax 14,243,000 8,946,000 7,439,000

Income Tax Expense 2,384,000 2,040,000 1,632,000

Minority Interest -50,000 -82,000 -

Net Income From Continuing Ops 12,834,000 7,605,000 5,807,000

Non-recurring Events

Discontinued Operations - - -

Extraordinary Items - - -

Effect Of Accounting Changes - - -

Other Items - - -

Net Income 11,809,000 6,824,000 5,807,000

Preferred Stock And Other Adjustments - - -

Net Income Applicable To Common Shares 11,809,000 6,824,000 5,807,000


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Future: Mission and Vision

The world is changing all around us. To continue to thrive as a business over the next tenyears and beyond, we must look ahead, understand the trends and forces that will shape

our business in the future and move swiftly to prepare for what's to come. We must get

ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term

destination for our business and provides us with a "Road map" for winning together with

our bottling partners.

Our Mission

Our Road map 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

Our Vision

Our vision serves as the framework for our Road map and guides every aspect of ourbusiness 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 peoples 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 share owners while being mindful of our overall

responsibilities

Productivity: Be a highly effective, lean and fast-moving organization

Our Winning Culture

Our Winning Culture defines the attitudes and behaviours that will be required of us

to make our 2020 Vision a reality.


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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, its up to me

Passion: Committed in heart and mind

Diversity: As inclusive as our brands

Quality: What we do, we do well

Focus on the Market:

Focus on needs of our consumers, customers and franchise partners

Get out into the market and listen, observe and learn

Possess a world view

Focus on execution in the marketplace every day

Be insatiably curious

Work Smart :

Act with urgency Remain responsive to change

Have the courage to change course when needed

Remain constructively discontent

Work efficiently

Act Like Owners :

Be accountable for our actions and in actions

Steward system assets and focus on building value

Reward our people for taking risks and finding better ways to solve problems

Learn from our outcomes -- what worked and what didnt

Be the Brand :

Inspire creativity, passion, optimism and fun


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Bibliography

www.coca-colaindia.com

www.wikipedia.com

economictimes.indiatimes.com

www.business-standard.com

www.google.com

group coca cola

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