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 1990 and over the past nineteen
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.
1
THE MISSION STATEMENT OF THE
COCO COLA
COMPANY
Our mission statement is to maximize
shareowner value
over time.
In order to achieve this mission, we must
create value for all
the constraints we serve, including our
consumers, our
customers, our bottlers, and our
communities. The Coca
Cola Company creates value by executing
comprehensive
business strategy guided by six key
beliefs:
1. Consumer demand drives everything
we do.
2. Brand Coca Cola is the core of our
business
3. We will serve consumers a broad
selection of the
nonalcoholic ready-to–drink beverages
they want to
drink through out the day.
4. We will be the best marketers in the
world.
5. We will think and act locally.
6. We will lead as a model corporate
citizen.
The ultimate objectives of our business
strategy are to
increase volume, expand our share of
worldwide
nonalcoholic ready to drink beverages
sales, maximize
our long-term cash flows, and create
economic value
added by improving economic profit.
2
The Coca Cola system has more than 16
million customers
around the world that sells or serves our
products directly to
consumers. We keenly focus on enhancing
value for these
customers and helping them grow their
beverage businesses.
We strive to understand each customer’s
business and
needs, whether that customer is a
sophisticated retailer in a
developed market a kiosk owner in an
emerging market.
There are nearly 6 million people in the
world who are
potential consumers of our company’s
product. Ultimately,
our success in achieving our mission
depends on our ability
to satisfy more of their beverage
consumption demands and
our ability to add value for customers. We
achieve this when
we place the right products in the right
markets at the right
time.
3
COCA COLA INTERNATIONAL
HISTORY: HISTORY:
Coca-Cola Enterprises, established in
1986, is a young
company by the standards of the Coca-
Cola system.
Yet each of its franchises has a strong
heritage in the
traditions of Coca-Cola that is the
foundation for this
Company.
The Coca-Cola Company traces it’s
beginning to 1886,
when an Atlanta pharmacist, Dr. John
Pemberton ,
began to produce Coca-Cola syrup for sale
in fountain
drinks. However the bottling business
began in 1899
when two Chattanooga businessmen,
Benjamin F.
Thomas and Joseph B. Whitehead ,
secured the
exclusive rights to bottle and sell Coca-
Cola for most
of the United States from The Coca-Cola
Company.
The Coca-Cola bottling system continued
to operate as
independent, local businesses until the
early 1980s
when bottling franchises began to
consolidate. In 1986,
4
The Coca-Cola Company merged some of
its companyowned
operations with two large ownership
groups that
were for sale, the John T. Lupton
franchises and BCI
Holding Corporation's bottling holdings, to
form Coca-
Cola Enterprises Inc. The Company offered
its stock to
the public on November 21, 1986, at a
split-adjusted
price of $5.50 a share. On an annual basis,
total unit
case sales were 880,000 in 1986.
In December 1991, a merger between
Coca-Cola
Enterprises and the Johnston Coca-Cola
Bottling Group,
Inc. (Johnston) created a larger, stronger
Company, again
helping accelerate bottler consolidation.
As part of the
merger, the senior management team of
Johnston assumed
responsibility for managing the Company,
and began a
dramatic, successful restructuring in
1992.Unit case sales
had climbed to 1.4 billion, and total
revenues were $5
billion.
5
PRODUCT LINE:
The Coca-Cola Company has a no of
brands like Thums up,
Sprite, etc. 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.
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.
6
Multi branding is the is the branding
strategy used by Coca
Cola company for its different products.
Know the most recognized word on the
planet after “OK”!
Among the soft drinks Fanta and Sprite
become successful
along with the major brand Coca Cola
and Diet Coke. In
key markets, the company has created
new packaging sizes
to satisfy consumer demands.
7
STRATEGIC PLANNING :
In the year 2002, the company had a
great success, as the
strategy worked which resulted in making
Coca Cola
Company the world’s leading company. In
2001, company
accomplished the crust of it’s strategy as
• Worldwide volume increased by 4
percent with strong
international growth of 5 percent and clear
signs that
our North American business is growing
solidly and
predictable.
• Earnings per share grew by 82 percent,
as we delivered
on our commitment to create volume
growth while
aggressively
• Return on common equity grew from 23
percent in
2000 to 38 percent this year.
• Return on capital increased from 16
percent in 2000 to
27 percent in 2001.
• The company has generated free cash
flow of $3.1
billion, up from $2.8 billion in 2000, a clear
indication
of its underlying financial strength.
8
The strategy for the future of the company
is very
straightforward. The marketing strategy
for the year 2002
is as follows,
• Accelerate carbonated soft-drink growth,
led by Coca-
Cola.
• Selectively broaden the family of
beverage brands to
drive profitable growth.
• Grow system profitability and capability
together with
our bottling partners.
• Serve customers with creativity and
consistency to
generate growth across all channels.
• Direct investments to highest potential
areas across
markets.
• Drive efficiency and cost-effectiveness
everywhere
9
.
MAJOR COMPETITOR
(PEPSI INTERNATIONAL):
HISTORY
PepsiCo is a world leader in convenient
foods and
beverages, with revenues of about $27
billion and over
143,000 employees. The company
consists of the snack
businesses of Frito-Lay North America and
Frito-Lay
International; the beverage businesses of
Pepsi-Cola North
America, Gatorade/Tropicana North
America and PepsiCo
Beverages International; and Quaker
Foods North America,
manufacturer and marketer of ready-to-
eat cereals and other
food products. PepsiCo brands are
available in nearly 200
countries and territories.
Many of PepsiCo's brand names are over
100-years-old, but
the corporation is relatively young.
PepsiCo was founded in
1965 through the merger of Pepsi-Cola
and Frito-Lay.
Tropicana was acquired in 1998 and
PepsiCo merged with
The Quaker Oats Company, including
Gatorade, in
2001.would entertain the listener with the
latest musical
selections rendered by violin or piano or
both. The new
name, “Pepsi Cola”, is derived from the
two of the principle
ingredients, Pepsin and Kola Nuts. It was
first used on the
August 28. At that time, Bradham’s
advertising praises his
drink as “Exhilarating, invigorating, aids
digestion”.
10
1990-2002
The advertisement of the Pepsi changes
to, “You got the
right one baby, Uh-Huh!”.With the
extensive usage of the
stars in the adds, the popularity of Pepsi
increase. In 1992
Pepsi-Cola formed a partnership with
Thomas J. Lipton Co.
Today Lipton is the biggest selling ready-
to-drink tea brand
in the United States. Outside the United
States, Pepsi-Cola
Company's soft drink operations include
the business of
Seven-Up International. Pepsi-Cola
beverages are available
in more than 190 countries and territories.
In Asia, they selected Lahore to make their
regional office.
This was done in 1970. This regional office
is monitoring
all the operations carried out in South
West Asia. As in
India, they only entered beverage
industry. They have
eleven bottlers covering whole India.
11
COCA COLA INDIA
The Coca-Cola Company began operating
in India in 1949.
All the brands of Coca Cola are available in
India. The
Coca-Cola System in India operates
through eight bottlers,
four of which are majority-owned by
Hindustan Coca-Cola
Beverages Private Limited (HCCBPL). The
HCCBPL
plants are present in almost all the states
of India, The Coca-
Cola System in India serves 70,000
customers/retail outlets.
The Coca-Cola System in India employs
1,800 people.
During the last two years, The Coca-Cola
System in India
has invested over $130 million (U.S.)
12
PROMISE OF COKE
The basic proposition of our business is
simple, solid and
timeless. When we bring refreshment,
value, joy and fun to
our stakeholders, then we successfully
nurture and protect
our brands, particularly Coca-Cola. That is
the key to
fulfilling our ultimate obligation to provide
consistently
attractive returns to the owners of our
business.
TARGET MARKET
Coke’s commercials basically based on
young generations,
so, the young generation is the target
market of Coke
because they want to represent Coke with
the youth and
energy but they also consider about the
old people they take
then as a co-target market.
MAJOR SEGMENTS
Major segments are basically those people
who take this
drink daily and those areas where the
demand is higher then
the other areas. There are so many people
who take this
drink daily and those people who take
weekly and those
who take less often are always there as
well. So, their basic
segments are those people who take this
drink regularly.
13
FACTORS AFFECTING SALES
There are so many factors, which affect
the sale of coke.
Here we are discussing two major factors
which effects
coke.
• Per capita income
• Weather
Per Capita Income
First we will discuss about “Per capita
income”. This is
major factor that affects the sale of this
soft drink. Because
which every passing year budgets are
becoming very strict
and tight in order to purchase things. So
the disposable
incomes of the people are coming down.
They spend
heavily on rents, utilities, and education
and basic
necessities and after that when they get
extra money they
think about this soft drink .So the
decreasing per capita
income effects badly in selling and
production of this soft
drink.
And to get through with this difficulty
there is need to
increase the level of per capita income of
India because it is
much lesser than the rest of the countries.
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Weather
Weather is the third major factor in
effecting the Coke’s
selling. This is underdeveloped market so
the coke’s
consumption in summers is 60% and in
winters is 40%.
THREATS FROM COMPETITORS
Threats are well planned. Price is the
major threat. When
price goes certain beyond the exact price
whether come
down or go higher its effects the
consumption of soft drink.
Because when the prices go higher people
go for the
substitute of “coke” i.e. Pepsi.
And when price goes down they think that
there is must be
some thing wrong in it.
In short it all depends on customer’s
perception.
15
BGG MATRIX OF COCA-COLA
COMPANY
Currently, Thums Up and Maaza are the
STARS of Coca
Cola Company. The market shares of
Fanta and Sprite are
quite low even though they are growing at
a good rate. They
are QUESTION MARKS for the company.
Limca and
Kinley are the CASH COWS for the
company and do not
need promotions to bulk up their sales.
Coca Cola is a DOG
for the company and need to be removed
out of the market
or a new strategy has to be adopted for
the same.
16
TARGETS THAT THE COMPANY WOULD
LIKE TO
ATTAIN
Every organization runs on the bases of
profit maximization
so Coke is also looking for a high profit
margin.
There are three major ways of making
money
• Over night profit
• Windfall profit
Over Night Profits
They could be over night profit that is for
the number 1
brand for the year. This could be got my
increasing sales
volume
Windfall Profit
Can be windfall profit. They are the extras
profit. When the
consumption the consumption is on boom.
So, there is
different kind of profits.
Some profits stays for some time like
“over night profits”
and some just come and go like “wind fall
profits”. And
they can also get profit through different
approaches
17
EXPANDING TARGET MARKET
In last 2 years Coke has come back in
aggressive manner.
• Attractive brand name
• Brand differentiating
Attractive Brand Name
Now the consumers know the Name of
Coke, because Coke
is the name, which is the most popular
after the word “ok”.
So people can better differentiate brands
with each other.
Brand Differentiation
Now different companies have got
different brand names.
So, people can distinguish between
brands. Two major
brands “coke” and “Pepsi” also have
brand names.
Coca Cola’s Brand
Coca cola is “US” brand. Because they
believe in the
togetherness, being people together and
friends are being
together. Coca Cola strongly believes that
the Indian
temperament is “US” not “ME”
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MARKETING STRATEGY
Our local marketing strategy enables Coke
to listen to all the
voices around the world asking for
beverages that span the
entire spectrum of tastes and occasions.
What people want
in a beverage is a reflection of which they
are, where they
live, how they work and play, and how
they relax and
recharge. Whether you're a student in the
United States
enjoying a refreshing Coca-Cola, a woman
in Italy taking a
tea break, a child in Peru asking for a juice
drink, or a
couple in Korea buying bottled water after
a run together,
we're there for you. We are determined
not only to make
great drinks, but also to contribute to
communities around
the world through our commitments to
education, health,
wellness, and diversity. Coke strives to be
a good neighbor,
consistently shaping our business
decisions to improve the
quality of life in the communities in which
we do business.
It's a special thing to have billions of
friends around the
world, and we never forget it.
19
MARKET POSITIONING
Product Range
The total range of Coca Cola Company in
India includes:
• Coke.
• Sprite.
• Fanta.
• Diet Coke
• Maaza
• Kinley Soda
• Limca
• Minute Maid Pulpy Orange
• .Thums Up
And company offers their products in
different bottle sizes
these include:
• SSRB (standers size returnable bottle)
• LRB (litter returnable bottle)
20
• NRB (no return bottle) or disposable
bottle
• PET 1.5 (1.5 litter plastic bottle)
• CANS (tin pack 330 ml)
21
PRODUCT LIFE CYCLE:
To be able to market its product properly,
a firm 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 and
Decline. 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".
Whilst Coca-Cola manages to increase
global sales through
entry into additional markets, many of its
core products
have remained the same over significant
periods; it has just
been their branding that has changed.
22
MARKETING MIX- THE 4 P’S:
1. PRODUCT:
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 stars for quality and
packaging.
After the pesticide matter coca cola
was given a
certificate that it is safe to be
consumed.
23
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.
24
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
25
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.
26
2. PRICE
Trade Promotion:
Coca Cola Company gives incentives to
middle men or
retailers in way that they offer them free
samples and free
empty bottles, by this these retailers and
middle man push
their product in the market. And that’s
why coca cola seen
more in the market. And they have a good
sale in the market
because according to the expert which
product seen more in
the market that sells more.
“Seen as sold”
They do agreements with a shop keepers
and stores to
exclusive sale in those stores. These
stores are called as
KEY accounts in their local language.
And coke also invest heavy budget on
these stores and
offers them free samples and free bottles
and some time
cash incentives.
Different Price in Different Seasons
Some times Coca Cola Company changes
their product
prices according to the season. Summer is
supposed to be a
good season for beverage industry in
India.
So in winter they reduce their prices to
maintain their sales
and profit. But normally they reduce the
prices of their pet
bottles or 1 litter glass bottle.
27
3. PLACE
Coca-Cola is distributed to more than 200
countries, with
more than 450 brands consisting of 2800
beverage products.
Each of these products is packaged and
formulated to meet the
consumer needs and preferences of its
region or country.
Coca-cola produces the product, but relies
on its
Distribution channel to get the product to
the consumer, by
working with bottling companies and
retailers. Coca-cola
does not have control over the entire
distribution channel,
but has strong governing principles for all
of its suppliers to
ensure they adhere to Coca-Colas
guidelines
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4. PROMOTION
SALES PROMOTION ACTIVITIES
Coca-Cola Cricket
Cricket the most sought after; watched &
played game in
India. Coca-Cola signed a sponsorship
agreement with eight
of India’s National cricket players. Coca-
Cola realizing the
fact that cricket is a very strong element
by which it can
reach it consumers & masses invested in
the opportunity
and launched a massive campaign on
mass media showing
all these cricket stars endorsing &
complimenting Coca-
Cola brand. The Coca-Cola Company
developed three TV
commercials & four testimonial ads with
the player & ran
them on the national net work during
various cricket
matches. These bold steps taken by the
Coca-Cola
marketing unit acclaimed them many
acknowledgements
across the board. This campaign helped
Coca-Cola to
establish its association with the game &
the player.
Coca-Cola Food Mela
With a splash of food, fun & prizes to be
won, the Coca-
Cola food mela treated the people of
Delhi, to a festive food
festival comprising of 50 restaurants,
spread out all over the
29
bustling city’s map. The promotion saw
the avid families &
friends enjoying the delicacies at the
restaurants; all
resiliently upholding the Coca-Cola
identity.
Coca-Cola Party in a Park
In June 2000, Coca-Cola created an
experiential musical
evening in Mumbai, where various
musicians performed.
This program was recorded and one-hour
program shown in
the national TV for free.10 million
households saw Coca-
Cola ‘Party in a Park’ while 10 thousand
people attended
the event.
Coca-Cola Shopping Festival
Coca-Cola hosted “The Coca-Cola
Shopping Festival”;
Delhi’s first shopping festival, a
resounding success with
tempting discounts, live music, great
prizes & fire works.
Liberty marketing was a hive of activities
during the
weeklong shopping extravaganza. The in
augural event
proved so popular that it is now set to
become an annual
fixture.
Coca-Cola Pet Promotion
In 1996, Coca-Cola launched 1.5 liter Pet
contour bottle for
the first time in India. Targeting house
wives & family
home, Coca-Cola’s 1.5 liter Pet bottle, took
the limelight &
gained momentum with a campaign
promoting the unique
packaging and its numerous consumer
benefits .A treat for
30
the family, Coca-Cola’s PET was offered
through a “priceoff”
promotion that said……….Go out & get
some
Coca-Cola Wonder of the World
Promotion
In July 2000, Coca-Cola set the stage of
the grand UTC
promotion. Coca-Cola went ahead with the
idea of giving
consumer chances to win fabulous,
magical “dream
vacation” to numerous “wonder
destination” throughout the
world on every purchase of a 250 ml RGB
bottle of Coca-
Cola, Sprite, & Fanta. The promotion gave
consumers a
chance to win free drink, a trip to PARIS,
HOLLYWOOD,
NEWYORK, SINGAPORE & CAIRO along
with airfare &
four nights free stay in these dream lands.
The promotion
saw avid consumer collecting Coca-Cola
‘Crown caps’ &
sparked a keen response from the public ,
rendering an
outstanding testimonial campaign in the
second phase,
highlighting the winners over whelmed in
the magical
delight of their favorite beverage Coca-
Cola.
Coca-Cola & Nokia
In August 2001, the new under-the-crown
promotion “Nikla
Kya?”(What have u won) was launched in
collaboration
with Nokia.The promotion gave consumer
a chance to win
thousand’s of Coca-Cola branded Nokia
3310 cellular
phones on every purchase of 750ml RGB
bottle of Coca-
Cola ,Sprite, & Fanta.The other highlight of
promotion was
31
the “Caught Red Handed” campaign.
Branded Coca-Cola
with ‘caught red handed’ team in them
went to Delhi,
Mumbai Kolkata and Bangalore for three
days, with target
that anyone being caught drinking Coca-
Cola will be
awarded a nokia 3310 mobile phone & if
someone is caught
talking on a nokia mobile will win free
supply of Coca-
Cola. Caught red handed become a huge
success among the
masses as it was one to one interaction
between the Coca-
Cola brand & the consumers. This activity
helped billed
confidence and brand loyalty among core
consumers.
Coca-Cola & Mc Donald’s
Coca-Cola & key account of MC Donald’s
launched the
“we go together” joint promotion to
reinstate amongst
consumers a real sense of the affinity that,
both shares
globally. The promotion kicked off with
pos material
(Danglers, Bunting etc) displayed at all MC
Donald’s
restaurants along with a special offer for
coke & fries.
Diet Coke
After the acquisition of the individual local
franchise
bottling facilities in 1996, the company
successfully
launched its first new product, diet coke,
for the first time in
almost 3 years.
32
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.
33
Radio advertisement 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 Print advertisement
If we talk about print ads there are
hoardings of coke. Some
of the hoardings are as shown below:-
34
These are some of the hoardings of vanilla
coke a product of
coke.
SWOT
(Strength, Weakness, Opportunities,
Threats)
Analysis
STRENGHT:
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
35
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
36
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
37
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
38
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.Coca-Cola can be SUBSTITUTED by other
soft drink
products made by its competitors.
39
3. 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.
4. 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.
5.Other threat which the companies
possess is of
CHANGE OF TASTE of their consumers.
CONCLUSION OF SWOT ANALYSIS:
After thorough research, we come to the
conclusion that the
marketing strategy of Coca Cola is
working for them and
the product is gaining popularity among
youth day by day.
RECOMMENDATIONS:
40
After completing our project we have
concluded some
recommendation for the coca cola
company, which are
following.
• Coca Cola Company should try to
emphasis more on
providing their infrastructure in the
market to facilitate
their customers.
• According to the survey, conducted by
the international
firm India people like little bit sweeter cola
drink. So
for this coca cola company should produce
their
product according to the local demand.
• Marketing team should try to increase
the availability of
Coke in rural areas.
• They should also focus the old people.
• Now young generation has a trend to
drink a coke 2
regular bottles at same time, so providing
more
satisfaction to them company should
introduce ½ liter
disposable bottle.
41
42
PEST ANALYSIS OF COCA-COLA:
There are four variables, which we will
discuss in our
report, they are:
POLITICAL VARIABLES POLITICAL
VARIABLES
Political
variables
Strongly
Effected
++
Some
what
Effected
+
No
Effect
+−
Some
what
Effected
−
Strongly
Effected
−−
Effects of
government
regulations &
deregulations
NE
Effect of
environmenta
l protection
laws if any
YES
Import and
export
regulations
NE
Effect of
political
conditions in
certain
countries of
Coke
NE
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Conclusion of Political Analysis:
As far as the above table is concerned it
could be seen that
there are very little chances of “political
variables” to effect
the coke’s production and selling
behavior.
In the “political variables” most of the
things are related to
Governmental activities. So, they don’t
leave any good or
bad impact in the Industry of coke.
And there are some exceptional things
like: “environmental
protection laws” they some what effect
the industry of
Coke. From last two years Government is
going to be really
very much conscious about the
environment. But after
making the adjustments in plants and
applying the proper
way of wastage the chances of being
affected by the
“protection laws” are going to be
diminished. So it impact
good for the Coke’s reputation. And the
second thing in
political variables which effects Coke is
“elections”
Because in the days of elections, a
country’s production in
any field is declined. So it affects slightly
the revolution of
Coke.
So “political conditions” are over all
leave neutral effects
on coke’s industry.
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ECONOMICAL VARIABLES
Economical
Variables
Strongly
Effected
++
Some
what
Effected
+
No
Effect
+−
Some
what
Effected
−
Strongly
Effected
−−
Do soaring
interest rates
make business
task any
harder
YES
Any effect due
to inflation
YES
Anything done
to reduce
unemployment
YES
Any effect of
11th September
2001, incident
at Coke in
India
NE
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Conclusion of Economical Analysis
It could be seen that “economical
variables” highly affects
the Coke’s resolution. Economic factors
are those actors
who effect the production of any industry.
So, Coke is not
the out of question. If the economic
conditions of the
country is not that strong and Coke
increases its Price in this
situation. Then it would impact highly
negative. And
inflation is also not a good position for any
country’s
production point of view. It also impacts
highly negative in
the Coke’s production.
And as a country concerned like “India”
where the
unemployment rate is very much high.
The Coca-Cola
system in India employs 1,800 people.
During the last 2
years, the Coca-Cola system in India has
involved over
$130 million (U.S).
When we draw the conclusion of
“economic variables”.
Then we come to know that if economic
variables are in the
favorable position of country then they
impact good other
wise the impact highly bad.
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SOCIAL VARIABLES
Social
variables
Strongly
Effected
++
Some
what
Effected
+
No
Effect
+−
Some
what
Effected
−
Strongly
Effected
−−
Effects of
advertisement
of Coke on
Public
popularity
YES
How will do
Coke’s
contribution
affect charity
organizations
of India
YES
Has rising
consciousnes
s of natural
resources in
people
effected your
“save
environment
activities.
YES
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Conclusion of social analysis:
EDUCATION
The Coca-Cola Company has always
believed that
education is a powerful force in improving
the quality of life
and creating opportunity for people and
their families
around the world.
The Coca-Cola Company is committed to
helping people
make their dreams come true. All over the
world, we are
involved in innovative programs that give
hard-working,
Knowledge-hungry students books,
supplies, places to study
and scholarships. From youth in Brazil to
first generation
scholars, educational programs in local
communities are our
priority.
ENVIRONMENT
A large part or our relationship with the
world around us is
our relationship with the physical world.
While we have
always sought to be sensitive to the
environment, we must
use our significant resources and
capabilities to provide
active leadership on environmental issues,
particularly those
relevant to our business. We want the
world we share to be
clean and beautiful. We are always
innovating to bring you
different delicious beverages. This same
spirit of innovation
comes alive in our environment programs.
We’re committed
to preserving our environment, from use
of more than $ 2
48
billion (U.S) a year in recycling content
and suppliers, and
environment
Management initiatives, down to very
local neighborhood
collection and beautification efforts.
Here’s a sample of
what we’re doing in different communities
around the world
regarding the conservation of water and
natural resources,
climate changes, waste environment
education.
The Coca-Cola system in India operates
through eight
bottlers. Four of which are majority-owned
by Hindustan
Coca-Cola Beverages Private Limited
(HCCBPL).
49
TECHNOLOGICAL VARIABLES
Technological
variables
Strongly
Effected
++
Some
what
Effected
+
No
Effect
+−
Some
what
Effected
−
Strongly
Effected
−−
Have business
innovations
effectively
promoted your
business
YES
Has the
government’s
regulations
ever hindered
in importing
technical
equipment
YES
Does Coke
help in
promoting
paperless
environment
YES
Conclusion of Technological Analysis
50
Of course business innovation leaves
highly good impacts in
the business of Coke. As coke use more
advance technology
in its production process. It will resulted in
increment of
their production through out the country.
As far as the “governmental hindrances”
are concerned the
impacts highly bad on coke’s production.
Ever year when
budget in announced government taxes
rates always shoot
up. This approach of government
decreases the profit
margin of Coke.
As the coke helping in promoting
“paperless
environment” .it impacts good, because
computers are the
basic need of any person now a days. And
though it’s a big
industry so it is promoting the trend of
paperless
environment. And it is giving the way of
other industries to
come to new technologies and into a new
world of business.
Through computers coke can increase the
efficiency of its
business and can have up –to-date data
about their
productions.
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OVER ALL RESULTS OF PEST
ANANYSIS
After our studies and analysis of HCCBPL
(Hindustan
Coca-Cola Beverages Private Limited), we
came up with the
very interesting report of facts and
figures. Coca-Cola is no
doubt one of the most popular beverage
companies. They
spend billion of dollars on their
advertisement, promotions
and recreational campaign.
Coca-Cola is a close competitor of Pepsi
and it certainly
gives its rival a tough time. Coca-Cola is a
27% shareholder
in the India market and they don’t want to
stop here!! Its
target market is to achieve a much higher
%age. Coca-Cola
has about 2000 employees at Indian
plants. Wada plant of
Coca-Cola is one of the biggest plants in
Asia,
Coca-Cola has always had a close
consumer and supplier
relationship with its customers. Its
entertaining and colorful
advertisements have always and will
always rock the media.
Indian rock stars, sportsmen and actors
have played a very
vital role in making Coca-Cola such a
popular beverage.
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CONCLUSION:
Coca-Cola no doubt come the heart beat
of India. Coca-Cola
is one of the leaders in sponsoring the
most important,
thrilling events. E.g. Cricket matches
concerts and many
other social occasions.
So…
“ Jo chaho ho jaye coca-cola enjoy ”
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