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Our Roadmap 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.
VISION:
Our vision serves as the framework for our Roadmap and guides every aspect of our business 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 people's 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 shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.
HISTORY OF COCA-COLA The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin Mariani, a European cocawine. In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine Coca. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for the health.[9] Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. By 1888, three versions of Coca-Cola sold by three separate businesses were on the market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an ongoing addiction to morphine, Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling his own version of the product.
John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out of the business. Candler purchased exclusive rights to the formula from John Pemberton, Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim her signature on the bill of sale had been forged, and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well.
Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced to close down its operation by a socialist government in the drive for self sufficiency. After 16 years of absence, coca cola returned to India and witnessed a different culture and economic platform. During their absence, Parle brothers introduced a new type of cola called THUMS UP. Along with, they also formulated a lemon flavoured drink, LIMCA, and mango flavoured, MAAZA. In 1993, coca cola bought the whole Parle Brother operation, in a hope to beat the main competitor (Pepsi). They presumed that with the tried and tested products of Parle they will be able to regain their throne in the Indian soft drink market. Pepsi having a 6 year head start helped revive the demand for global cola but it was not easy for the soft drink giant (coca cola) to return to India. Pepsi put more focus on the youth of the country in their advertisements but coca cola tried influencing Indians with the American way of life, which turned out to be a mistake. Coca-Cola invested heavily in India for the first five years, which got them credit of being one of the biggest investor in the country; however, their sales figures were not so impressive. Hence, they had to re-think their market strategies. Coca-Cola learned from Hindustan Lever that reducing their will result in more turnover, hence leading to profit. They launched an extensive market research in India. They ascertained that in India 3 As must be applied; Affordability, Availability and Acceptability. CocaCola learnt that they were competing with local drinks such as Nimbu Pani, Narial Pani, Lassi etc. and reached to a conclusion that competitive pricing was unavoidable. Since then they introduced a 200 ml glass bottle for Rs.5.
Further, they had different advertising campaigns for different regions of the country. In the southern part, their strategy was to make Bollywood or Tamil stars to endorse their products. In various regions they tried portraying coca cola products with different regional food products. One of the most famous ad campaigns in India was Thanda Matlab Coca-Cola; they featured the same quote with different regional entities. Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i.e. 60% in Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33% in Packaged water Segment, compared to its arch rival, Pepsi. Diversifying their product range and having a competitive pricing policy, they have regained their throne. 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 its vast procurement, supply, and distribution System. The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with another 25 being owned by franchisees. That apart, a network of 21 contract packers 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 the Countrys remotest areas.
Company Overview
Coke re-entered India in 1993 Coke India comprises of: Coca-Cola India Hindustan Coca-Cola Beverages Franchisee bottling operations Coke globally serves 500 brands in 200 countries @ 1.7 billion servings per day Operates a franchised distribution system 1889 Market Cap: $167.25 Billion (Global) Revenues: $46.542 Billion (Global) Employees = 25K direct & 150K indirect (India)
Promotional Schemes
Soft drinks: 600ml 1case + 2x500ml soda free 600ml 2case + 5x500ml soda free 2 litre 1case + 2x500ml soda free 1.25litre 1case + 1.25litre Limca free (1.5litre out of stock) Juice: 1.25litre 1case Mazaa + 1.25litre Mazaa free Water: 5box (15x5) + 1box free Energy drink: 1box (24pcs) + 4pcs free
Business Model
Manufactures & distributes Concentrates Syrups
Coca-Cola India
Manufactures Concentrate, Beverage base and Syrup Manufactures finished Bottles/Cans/Fountai n Syrup
Customers
Distribution
Coca-cola company distributes their schemes according to area. Area or place where soft drinks sold in a large manner, on those place company gives good schemes to shopkeeper and retailer. Place like railway station bus stand are consider in this category and place which have low selling where company gives small schemes to shopkeepers.
Distribution
Area wise distribution & promotion schemes Focus on high traffic locations 1 Railway stations 2 Bus stand Coke India distributes using 2 routes 1 Direct 2 Indirect
The coco cola company produces only the syrup that is used to make it sodas. It manufactures and distributes a number of non alcoholic beverages concentrates and syrups. It does not produce the final beverage. It has 400 brands but it does not produce the final product in any of them. The company provides the syrups and concentrates to franchisees who use these to make the final beverage although the company holds interest in some of the major bottlers and distributors. The actual formula coco cola uses is a very tightly held trade secret so there is a little information regarding the exact ingredients and thus, the little information of the cost of their supplies. Specially ,the company uses high fructose corn syrup, sucrose, aspartame, and citrus concentrates.
Margins
Margins per crate (comprising 24 bottles of 300 ml each) is Rs 20. On the 200 ml pack size, margin is Rs 16 per crate. Sales of the more affordable 200 ml pack size account for about 60 per cent of its total carbonated soft drink (CSD) sales. Non-CSD business accounts for 15 per cent. Outsourced distribution so that trucks and other equipment needed for the purpose are no longer owned by the company.
Financials