Introduction of the Company• Founded in 1892 after the formula was

invented by Pharmacist John S. Pemberton• Headquartered at Atlanta, Georgia-USA• Currently offers more than 500 brands in over

200 countries • Provides 1.7 billion servings a day• Of this Coca Cola(Coke) accounts for nearly

78%• Sales distributed as follows: 42%(USA), 38%

(Mexico, India, Brazil, Japan and China), 20%(Rest of the World)

• Financial Details : Revenue US$ 35.119 billion

Operating income US$ 8.449 billion

Net income US$ 11.809 billion

Total assets US$ 72.921 billion

Total equity US$ 31.317 billion• Employees: 1,39,600

Doubling the revenues by 2020

Making a positive difference in the communities

Project the company as a responsible corporate citizen

a) Sustainable water use & packagingb) Climate protection

Lift the corporate brand image

Connect with global middle class by creating new products and packaging formats for all lifestyles and occasions.

Objectives of the CompanyMission:To Refresh the World... In body, mind, and spiritTo Inspire Moments of Optimism…Through our brands and our actionsTo Create Value and Make a Difference... Everywhere we engage.Vision for 2020 Sustainable Growth:PROFIT: Maximizing return to shareowners while being mindful of our overall responsibilities.PEOPLE: Being a great place to work where people are inspired to be the best they can be.PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples’ Desires and needs.PARTNERS: Nurturing a winning network of partners and building mutual loyalty.PLANET: Being a responsible global citizen that makes a difference

Current Market Situation in IndiaThe carbonated drinks market is close to Rs 6,000 crore ($1.36 billion) with growth at 10-12 per centThe fruit juices and fruit-based drinks market is close to Rs 5,000 crore ($1.13 billion), growing at 35-40 per cent annually.Within the hot beverages category, India is the largest producer of tea and accounts for 28 per cent of the global production at 956 million kilograms annually.The total turnover of the tea industry is over Rs 8,000 crore ($ 1.8 billion), growing at a rate of 1.2 per cent annually.India is the world’s 5th largest producer of coffee, accounting for 4 per cent of the world’s production.In India, Coca Cola and Pepsi hold a market share of 95% of which coca cola has 60.8% the rest belongs to Pepsi.Main Indian Competitors:Pepsi Co.-Pepsi, Slice, Dew, Mirinda, Tropicana Juice, Lipton TeaNestlé-Nestea and other Milk Related Products.Dabur-Real Fruit juice

Strengths:Strong Brand Name Corporate Identity Global Distribution AdvertisementInnovationLocal Approach Strong R&D “Thanda Matlab Coca Cola” Brand Loyalty Financial Stability

Strenghts

Weaknesses:

Not No 1 In India

Market Share

Under Utilization Of Capacity

Sales In India

Water Controversy

Pesticide Controversy

Weakness

Thums up positioned

Expansion Into New Market

Possible Growing Demand

opportunities

Threats:Competition Pepsi

Substituted

Not Necessarily Married

Pesticide Matter

Water controversy

Target market

Diet coke: weight consciousnessMaaza: kids , juice loving peopleSprite: young people Thums-up: confident, mature and uniquely

masculine attitude peopleFanta: girls, ladies

Implementation-Brand Localization StrategyIndia A(4%):“Life Ho To Aisi” This segment sought social bonding as a need and responded to inspirational messages, celebrating the benefits of their increasing social and economic freedoms.

India B(96%):“Thanda Matlab Coca-Cola”Use of Idiomatic expressions and Local languageAccessibility CampaignDistribution Infrastructure: Retail Outlets Doubled in 2 yrs.(From 80,000 to 160,000)Doubled the Market Penetration in rural areas (13% to 26%)Campaign of the Year(2003), Advertiser of the Year(2003)

PromotionTop line promotion: T.V ads,

banner, celebrity

Bottom line promotion: promotion schemes, publicity material

Implementation through Advertising:Brand Ambassadors:Coca Cola: Imran Khan(Endorsement Fee:3.35 cr) Aamir Khan(Endorsement Fee:10 cr)

Virendar SehwagThums up-Akshay Kumar(Endorsement Fee: 5 cr)Fanta-Genelia D’souza (Fee: 1.13 cr)Sprite-Shahrukh Khan

Sponsorships:First Commercial Sponsor of Olympic Games in 1928Fifa World Cup(Since 1978)Major League Baseball, NBA, NHL.1996 Cricket World CupIPL: Delhi DaredevilsEnglish Football League(Coca Cola Championship, League 1, 2)

Implementation through Advertising:Mass Media:Hollywood Movies : Borat, Click, Failure to Launch, Glory Road, Gridiron Gang, Hostel, Mission: Impossible III, Silent Hill, The Covenant, The Departed

Bollywood Movies: Kaho Naa Pyar Hai, Rang De Basanti, Taal, Shree 420, Kuch Naa Kaho, Bobby.

Campaigns & Collaborations: Domino’s Coke Studio with MTV

Diwali Campaign: “Come Home on Deepawali” “Brrrrrr” Campaign

Issues and Initiatives in India Groundwater Depletion

◦ The Issue: Several droughts in a number of villages in Kerala and Uttar Pradesh where the plants operated were linked as a possible cause due to the large usage of water for production.

◦ The Initiatives: Reduce Recycle Replenish

◦ The Results: Water usage ratio reduced by more than 25%

from 2004-2009 Waste water treated to a level to support

aquatic life Rainwater harvesting potential equal to 93% of

ground water used.

Issues and Initiatives in India The Pesticide Controversy:

◦The Issue: in 2006, CSE established that Coke had 25 times the pesticide residue than found in 2003 which posed health risks, which also resulted in a 11% drop in sales.

◦The Initiative via Advertisements.

Initiatives in India

Coke studioSupport my schoolCricket highschool tournament

BudgetsCoca Cola has an global annual advertising budget of $1.6 billion a year.

2011-12 Q1 Highlights(Coca Cola India):Total Sales:$356.9 million Operating Income:$19.2millionNet Profits:$6.4millionEarning per Share:$1.69Current Trading Price:$63.70

Return on Equity:30.9%Return on Assets:15.1%Return on Invested Capital:25.1%Gross Profit Margin:68.4%

IMC TOOLS

Mediums Of Advertising The mediums of advertising used by Coca-Cola are: Print media: They print media for advertisement. Although very rare,

they have a separate department for print media. Point Of Sale Materials: Point of sale material this includes: Posters and Stickers

display in the stores and in different areas. It also includes:

Vizi cooler

Freezers

Display racks20

T.V Commercials As everybody know that TV is a most common entertaining medium so TV

commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels.  

It focuses on both the urban as well as the rural India with its advertisements.

In the summer of 2011, Coca-Cola introduced the new Brrrrr!! Ad and featured Imran Khan as the brand ambassador.

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Outdoor Advertising

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Direct Marketing .

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E- marketing

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Sales Promotion A sales promotion is an activity that is implemented to boost the sales of a

product or service temporarily. Coca-Cola does sales promotion in two ways to

quickly increase sales.  

1. Consumer - Oriented sales promotion:

Getting Shelves Eye Catching Position Under The Crown Scheme

2. Trade - Oriented sales promotion:

Discounts to retailers and stores Return back allowances Merchandising assets Free goods or free tours 25

Publicity/Public Relations Publicity refers to non personal communications regarding an

organization, product, service or idea not directly paid or run under identified sponsorship.

Today, the company can still use word of mouth advantage. For instance, when Coke produces a new product, and someone on their lunch break purchases that new product, and enjoys it, they will tell others in the office about how great the new product is. This will cause others to purchase the product, and in-turn increase sales.

Public relations is defined as “the management function which evaluates public attitudes, identifies the policies and procedures of an individual and organization with public interest, and executes a program of action to earn public understanding and acceptance”.

Coca-Cola can address law suits, rumors, stories, new products, and activities. There is also a section of the website devoted to investors. Here, current, or future, investors can access financial statements and up-to-the-minute stock information. 26

Publicity/Public Relations The Coca-Cola India is also undertaking some projects as a part of their social

cause and part of the corporate social responsibility. The support my school campaign along with NDTV has Sachin Tendulkar as the

brand ambassador. The project Unnati focuses on more yield of mangoes to farmers. Coca Cola also Sponsors events in cricket and music.

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Personal Selling

Coca-Cola has many salespeople, who are individuals representing the company to communicate, sell, service, and build relationships with customers.

These salespeople promote their product to different customers within their regions, and once they sustain a customer, they sell their products to them and service them many times per week.

These individuals form close relationships with the customers in order to continue business with them.

Thus though minimum, the company also thus have many sales people for personal selling.

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