INTRODUCTION

The Coca-Cola Company was first established

in 1886 by Dr John Styth
Pemberton. Today, the
company is the world's
leading manufacturer in the
beverage industry,
operating globally in more
than 200 countries with its
head office located in
Atlanta, USA. It produces
more than 300 beverage
brands and over 1.06 billion
drinks are consumed per
day.

In India, Coca-Cola was the

leading soft-drink till 1977 when govt. policies
necessitated its departure.

Coca-Cola returned to India in 1993 and over

the past ten years has captured the imagination
of the nation, building strong associations with
cricket, the thriving cinema industry, music etc.
Coca-Cola has been very strongly associated with
cricket, sponsoring the World Cup in 1996 and
various other tournaments, including the Coca-
Cola Cup in Sharjah in the late nineties.

A Healthy Growth To The Indian

Economy

Ever Since, Coca-Cola India has made significant investments to

build and continually consolidate its business in the country, including
new production facilities, waste water treatment plants, distribution
systems and marketing channels. Coca-Cola India is among the countries
top international investors, having invested more than US$ 1 billion in
India within a decade of its presence and further pledged another US$
100 million in 2003 for its operations.

A Pure Commitment to The Indian

Economy

The Company has not only shaked up the Indian carbonated drinks
market, and given consumers the pleasure of world-class drinks to fill up
their hydration, refreshment & nutrition needs but has also been
instrumental in giving an exponential growth to job opportunities.

Creating Enormous Job Opportunities

With virtually all the goods and services required to produce and
market Coca-Cola being made in India, the business system of the
Company directly employs approximately 6,000 people, and indirectly
creates employment for more than 125,000 people in related industries
through our vast procurement, supply and distribution system.
The vast Indian operations comprises 25 wholly-owned- company-
owned bottling operations and another 24 franchisee-owned bottling
operations. That apart, a network of 21 contract-packers also
manufactures a range of products for the Company On the distribution
front, 10-tonne trucks, open-bay three-wheelers that can navigate the
narrow alleyways of Indian cities constantly keep our brands available in
every nook and corner of countries.

Industry review
Players

The biggest competitor of coke is PepsiCo. other from Pepsi there

are many players in this industry like juices, natural drinks but
coke and pepsi dominate 95% of the market.

Growth Rate
Soft drink industry has shown a growth at a break neck speed.
During the last 4 to 5 years, the turn over has touched a mark of 7000
crore and is heading for 8000 crore mark. Globally, carbonated soft
drinks are third most consumed beverages. Per capita annual
consumption of carbonated soft drinks is nearly four times the per capita
consumption of fruit beverages. Soft drink
consumption is growing by around 7% to 8% a
year, according to the publication Global Soft
drinks 2002, total volume reached 412,000
million litres in 2001, giving a global per capita
consumption of around 67.5 litres per year. Carbonated Soft drinks
contributes 45% to the GLOBAL BEVERAGE SECTOR as compared to
Bottled water 31%, dilutables 6%, Juices/nectars 8%, Still drinks 10%.
Almost 19% of the population consume soft drinks. In India, the leading
players are Coca cola and Pepsi, who holds a strong market share. Coca
cola contributes to 58% market share whereas Pepsi holds 42% market
share. Soft drink market size for FY02 was around 270 m.n cases
(6480million bottles). During summer, the sales of these two
multinationals rise significantly to around 50% per annum.

SWOT of Pepsi

1. Pepsi has stayed in this market for almost one century. So they are
so experienced and stationed in people's mind deeply. Now no one
doesn't know the brand Pepsi-Cola Whenever the name Pepsi is
heard, people will conjure up the image of fresh and cool drink.

2. Pepsi-Cola is not only in high quality, cool and fresh but also have
a competitive price in indian market. Sometimes Pepsi-Cola even
has a lower price than Coca-Cola In india.

3. Pepsi is such an experienced powerful global company, Which has

a basic of a great fund. So it has the ability to place a Idle sum of
money to the promotion. We can see that the advertisement of
Pepsi-Cola is so attractive. It also invited the top famous people to
advertise for it. The advertisement is so elaborate and attractive so
that Pepsi gained the special prize of the advertisement Granny.

4. Pepsi also compares with the competitors and find their

disadvantages to update its own quality, flavor and also package
promptly in order to satisfy the consumers' need. This is the
biggest advantage of Pepsi company.

5. It is proved in a survey that 41% of the interviewees prefer the

flavor of Peps-Cola. It is the most popular one. Pepsi company also
produce the Diet-Cola to meet the people who more concern their
health. And it just changes the design of the package of Pepsi-Cola.
 The disadvantages of Pepsi-Cola
Still there are some disadvantages existing in Pepsi-Cola survey
showed that most of the people like the package of Coca-Cola best.48%
people like it. It has only 32% people prefer the package of Pepsi-Cola. So
the design of Pepsi-Cola's package is not as attractive as Coca--cola. It
still needs to be improved. We suggest that the package needs to be
designed more colorful to attract people's attention.

Although in the cola market there are many competitors, Pepsi still
has the opportunity to enlarge its market share because the cola in the
market is quite monotonic. Most of the end user is young people. There
are still some people who do not like the taste of the cola. So we can try
to provide some other taste of cola such as adding some lemon juice. We
can change the flavor in order to meet different taste of different people.

As to the threats, all of us know that Pepsi-Cola and Coca-Cola

have competition for about 80 years. Although Pepsi-Cola have won
several times during this competition, but the market share of Pepsi-cola
is a little bit smaller than Coca-Cola at global level.
 Marketing mix

Product

Product line :-

The Coca-Cola Company has n no of brands like thus up, sprite.

But if we talk about coca cola as a product it has sub products like Diet
Coke, Caffeine Free Coke, Cherry Coke Coca-Cola Zero, Vanilla Coke and
special editions with lemon and with lime, and even with coffee. They
introduced other cola drinks under the Coke brand name. The most
common of these is, which has become a major diet cola is diet coke. But
we find only diet coke and vanilla coke in India.

Coca Cola Company deals mainly in soft drink industry and these
are some of its major brand. It also deals in soda and mineral water
through the brand name kinley.
Multi branding is the is the branding strategy used by Coca Cola
company for its different products.

Quality :-

Water
Since water is a key component of the beverages, care is taken that the
quality of water is very good. And, since public water quality varies
around the world, each plant further treats the water it uses. This means
that before water is added to any of the beverages; it's rigorously filtered
and cleansed. Then they continuously sample the water to ensure it
meets the standard. Apart from that the company ensures quality by
making significant investments to build and continually consolidate its
business in the country, including new production facilities, waste water
treatment plants, distribution systems and marketing channels. Coca
cola has been rated three star for quality and packaging.

After the pesticide matter coca cola was given

a certificate that it is safe to be consumed.
 Certificate is as shown below.

“ Quality Is Our Highest Business

Objective ”

This is the statement given by the

company.

Brand Name :-

Proved in a survey

In 'blind' taste tests, people prefer the taste of Pepsi over the taste
of Coke. However, if the test is not 'blind' and the tasters know which
beverage is which, they prefer the taste of Coke over Pepsi! That is the
emotional power of a brand. The Coca-Cola brand has the power to
actually change an individual's taste!

Coca-cola is the no.1 brand in the world.

Coca-Cola is recognized by 94% of the world’s population.

Guinness World Record ranked coca cola as the most popular soft drink.
Coca-Cola had signed on various celebrities including movie stars such
as Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly,
southern celebrities like Vijay in the past. Today, its brand ambassadors
are Aamir Khan and Hrithik Roshan.
Logo :-
The famous Coca-Cola logo was created by John Pemberton's
bookkeeper, Frank Mason Robinson, in 1885. It was Robinson who came
up with the name, and he also chose the logo’s distinctive cursive script.
Coca cola has two registered trade marks as shown below.

Packaging :-
As we have visited Coca Cola Company personally
we have seen that for pet bottles it is produced on
the spot when production and packaging work is
also done and the bottles are not reused. The glass
bottles production unit is not at the place of
production but it is brought till there and even the used bottles are used
after cleaning it through many processes. The cans are imported from
foreign countries as it is not produced here.

The packaging of have been always very attractive and

different from others, as we can also see in the bottles
below. Even the 600 ml bottle has a different kind of
packaging.
The first shape that was registered was of the coca
cola bottle. Once the filled beverages have passed final
inspection, they are ready to be packaged for
delivery. Generally, packing can refer to
everything from the unique "BOTTLE" and
"CAN" designs, to label designs, to cardboard
boxes and containers, to plastic rings. Because the
needs and tastes of our consumers are so diverse,
packaging varies depending on where the
beverages are being sent

Sizes :-
Glass PET Can Fountain
500 ml, 1.5 L,
200 ml, 300 ml,
2 L, 330 ml Various Sizes
500 ml, 1000 ml
500 ml + 100 ml

Positioning :-
Value proposition: `To benefit and refresh everyone who is touched by
our business.'

Target customers are the people who are safety and taste conscious.
Its benefits is that the drink is refreshing.
Target customer, value proposition, benefits.

Innovative product :-
 In 2002, the Coca-Cola Company extended the products of Coke and
developed the new products Coke with lemon and Vanilla Coke. This
extension responded to consumer demands and generated sales and
profit. It also launched innovative product like diet coke which was then
also copied by their competitors but they dint succeeded.

Guarantees and warranties :-

Coca cola is best before 3 months of manufacturing date.

Price
Most of the bottling companies are under the control of coke which
gives that much of flexibility for its modulations in the pricing strategy
which cannot be exercised by the rival cola giant PepsiCo because it does
not own its own bottling companies hence it does not enjoy that much of
flexibility in modulating the pricing strategy of PepsiCo.

Coca cola is available at prices depending on their sizes.

For e.g. 200ml is available at Rs.8.

500ml is available at Rs.20.

1.5 ltr is available at Rs.43.

2 ltr is available at Rs. 48.

The coke is sold in retail stores , petrol stations etc. The pricing
methods are set by the company. Usually the prices are fixed. Meet-the-
competition pricing The Coca-Cola products pricing are set around the
same level as its competitors.

Psychological pricing Most of the Coca-Cola products use this method

of pricing. For example, for a pack of 5 cans of Coca-Cola soft drinks it is
priced at Rs.99 instead of Rs.100 this pricing strategy makes consumers
perceive the products to be cheaper.

When coca cola entered into Indian market it used penetration method.
In India it started with low price, its price in India was just Rs 5 in the
year 2003 with an intention to occupy Indian rural market, which is
almost 90%of the population.

Coca cola also follows going rate policy as the price of its major
competitor Pepsi.

Promotion

Advertisement :-
Advertising The Coca-Cola Company uses advertising as its main source
of increasing consumer awareness. It mainly uses television for
advertisement. There are many television advertisements on Coca-Cola
products. This source allows the company's products to reach a large
audience. The latest television advertisement for Coca-Cola soft drinks
was Aamir khans ` hum same same' advertisement. One of the older one
are `thanda matlab coca cola' & ‘Manu bhabhi’. The company also uses
the radio as another source of advertisement. This is a cheaper source of
approach compared to the television. But in television the insertion time
per capita is very low compared to radio. The business had substantial
advertising and promotions of the company's brands. The Coca-Cola
Company when advertising has a primary target market of those who are
of age 13-24, and a secondary market of age 10-39. These are some of the
TV commercials of coca cola.
Radio advertisement :-
Other from this it also advertises on radio for e.g. “thanda matlab coca
cola”, “life ho toh aisi” and many other.
For radio advertisement they mainly use the proverbs only.

Print advertisement :-
If we talk about print ads there are hoardings of coke. Some of the
hoardings are as shown below:-
These are some of the hoardings of vanilla coke a product of coke.

The special thing about the all the ad of coca cola is that its advertising
message is very effective.

Coca cola also some times use Bollywood for their advertisement like
Dhoom 2 and Na tum jano naa hum. It also sponsored 1997 world
cup. It has also sponsored fifa world cup which gave it lots of
publicity.
 Brand localization strategy in two
India’s
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
country’s population. This segment sought social bonding as a need and
responded to inspirational messages, celebrating the benefits of teir
increasing social and economic freedoms. “Life ho to aisi,” (life as it
should be) was successful and relevant tagline found in Coca-Cola’s
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 nation’s population. This segment’s primary need was out-of-
home thirst-quenching and the soft drink category was undifferentiated
in the minds of rural consumers.

Additionally, within average Coke costing Rs. 10 and an average

day’s wages around Rs. 100, Coke was perceived as a luxury that few
could afford. 34In 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 half, to 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 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%.35Coke’s 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. Literally translated 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 “Thanda” or generic cold beverage just like
tea, lassi, or lemonade. As a result of the Thanda campaign, Coca-Cola
won Advertiser of the Year and Campaign of the Year in 2003.

Coca cola soft drink advertisement is handled by Mc Cann-Erickson

(India) Ltd.

Sales promotion
Coca cola at every stage has done sales promotion. If you must have
remembered the Aish Cash offer of coca cola which was a big success
now also a new offer have come into market, which is there for all
products of coca cola. Now they have started a new “sms and win offer”
which will soon hit the market.

Aish cash contests ad :-

Coca-Cola

A porter is admiring a Offended he whispers Just then an ad on TV

cleaning lady, when she to himself, "Ek din beckons
shouts, "Aeh Ramu, Ramuji bologi." him, "Kismat ke
chal hat." darshan pane hai
to aaja."
The ad continues, Ramu wins and enters Getting into a limo with
"Thande ka liner thandi the fantasy world Aishwarya he
se bottle par laga ja. singing, "Ab the continues, "Lambi si
Lakho ka cash pa, ya bhaiya kismat ka main gadi mein chode se
mere saath videsh gate khola hua jarenge yo."
aaja." parenge yo."

Receiving a red carpet A voice asks, "Aur kya Finally his dream
welcome with the chahiye?" and cutting comes true as the
heroine, he goes on, the ribbon he says, cleaning lady with
"Aishwarya Rai ke sang "Saurat much respect calls
photo khichwarenge bhi parenge, izzat bhi out, "Aapka phooto
yo." parenge yo." Ramuji."

MVO: "Inki to kismat

badli, aapki
bhi badal sakti hai.
Thanda Aish
cash."
Free samples are distributed when any group of people or students visit
its industry.

Public Relation

Coke India partnered with NGOs and governments to provide

medical access to poor people through regular health camps. Like its
parent, Coke India initiatives were both community and environment-
focused.
Priorities included education, where primary education projects
had been set up to benefit children in slums and villages, water
conservation, where the Company supported community-based
rainwater harvesting projects to restore water levels and promote
conservation education, and health.
 Place

Indirect distribution. Coca-Cola Company uses intermediaries in

its distribution. That is, the company does not sell its products directly to
its consumers. The Coca-Cola Company uses the intensive distribution
strategy. The business's products are sold in almost every outlet
including: · retail outlets · small shops · restaurants · petrol stations ·
newsagents · schools · sports and entertainment venues· from vending
machines.

Ware housing & delivery :-

In order to make sure the freshest beverages possible get to you,
each warehouse must efficiently manage the thousands of beverages
cases produced each day. Beverage organization is key, though it's the
bottle and can coding that allow for the necessary precision. From the
warehouse, they load beverages on to our distinctive trucks. Night and
day, the trucks are delivering our refreshing beverages to stores, soda
fountains, and vending machines near you.

Marketing Channels :-
The distribution chain is given below:-
Company warehousing  wholesellers  retailers  consumers.

Company’s products are transported from it’s warehouses to their

respective dealers. Company uses its own transport medium like trucks
and other heavy vehicles.

Coverage :-
Company plans to grow their outlet base by 100,000 outlets next year to
6,00,000 outlets and will not stop growing that base until they are truly
"within arm's reach of desire". The company had opened 50,000 new
outlets in the first two months of this year, as part of its plans to cover
one lakh outlets for the coming summer season. The new outlets also
covered 3,500 new villages.
 SWOT

(Strength, Weakness, Opportunities,

Threats)

Strength
1. STRONG BRAND NAME The world's most valuable brand. Its
brand value at $70.45. It is the most recognizable word across the
 world after Ok is Coke. Extremely recognizable branding is one of
Coca-Cola’s greatest strengths. Coca-Cola’s brand name is known
well throughout by 90% of the world today.

2. CORPOARATE IDENTITY it has a very strong corporate identity

as it is very recognized company in all the parts of the world and it
is in existence since 1880’s.

3. GLOBAL DISTRIBUTION coca cola is available in each and every

part of the world as it is operating globally in more than 200
countries with its head office located in Atlanta, USA and daily
more than 1.06 billion dollar are consumed around the world.

4. ADVERTISEMENT of coke is very attractive and they use big stars

like Aamir Khan, Aishwarya Rai & Hrithik Roshan in it.

5. INNOVATION it always launches innovative products like diet

coke, vanilla coke and many other.

6. LOCAL APPROACH it conducts business on a global scale while at

the same time maintain a local approach which is purely visible
from its advertisement.

7. STRONG R&D coke has a very strong R&D.

8. BACKWARD INTEGRATION is one of its biggest strength as it has

wholly company owned bottling operations and that’s why it also
has a chance to work on is price. Also according to Bettman Coca-
Cola’s bottling system is one of their greatest strengths.

9. “THANDA MATLAB COCA COLA” campaign worked really well in

India.

10. BRAND LOYALTY Coca cola enjoys the brand loyalty from
the customers

11. FINANCIAL STABILTY is their in company as it is a very old

and prestigious brand.
 Weakness
1. NOT NO 1 IN INDIA in every part of the world coke is at the first
position in terms of sales leaving its competitors far behind. But in
India it is at the third position behind its biggest competitor Pepsi
at first place and coke owned company Thumsup at the second
place.

2. MARKET SHARE its market share in India as a product is very less

as compared to others.

3. UNDER UTILIZATION OF CAPACITY is one of its weakness

4. SALES IN INDIA its sale in India is 6 bottles per capita per year
which is very low compared to other western countries like Mexico
which has a total sale of 533 bottles per person per annum.

5. PESTICIDE SCANDAL in India decreased its sale and created a

doubt in minds of people about pesticide.

Opportunities
1. POSSIBLE GROWING DEMAND in a country like India the per
capita consumption of coca cola per year is the lowest in the world
that is only 6 per person.
2. DEVLOPING A GLOBAL BRAND

3. COCA COLA’S BOTTLING SYSTEM also allows the company to

take advantage. It can work on its price. Most of the bottling
companies are under the control of coke which gives that much of
flexibility for its modulations in the pricing strategy which cannot
be exercised by the rival cola giant pepsico because it does not own
its own bottling companies hence it does not enjoy that much of
flexibility in modulating the pricing strategy of PepsiCo.

4. SUFFICIENT CAPITAL gives it significant growth opportunities.

5. HAS A POTENTIAL to innovate and differentiate the company's

products to sustain a competitive advantage

6. EXPANSION INTO NEW MARKET other than soft drink market.

As coke is enjoying so good brand name, then if they enter in any
other industry with same brand name it can also succeed in that
industry.

7. MERGE with other global business is another option in front of

them to expand their business.

Threats
1. COMPETITION PEPSI its competition from Pepsi is a big threat to
the company as the market share of Pepsi is more than coke in
India
2. .
3. Coca-Cola can be SUBSTITUTED by other soft drink products
made by its competitors.
 4. 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.

5. PESTICIDE MATTER after the pesticide matter the sales of coke

felled tremendously and it happened twice and company has to get
a permanent solution to it.

6. Other threat which the companies possess is of CHANGE OF

TASTE of their consumers.

Future plans

Increasing the per capita

consumption of its beverages
Coca-Cola continues its efforts at increasing the per capita consumption
of its beverages in the country. India PCC currently is at 6 Servings a
Year. This requires a comprehensive activation of the Indian market by
addressing acceptability, affordability and availability of its products.

Expanding its distribution networks

The company had also decided to expand its retail network by 18 per
cent taking the total number of retailers to 1.3 million across the country.

Creating an ultra low cost model:

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

Leading the beverage revolution in

India
The company continues to build on its foundations in India. While it
continues to maximizes its carbonated soft drink potential through
various pack, pricing, occasion-based strategies across town-classes in
India, it is exploring other categories like juice, water and tea and coffee.
It is poised to lead the beverage revolution in India.