STUDENT NAME/FAHEEM SHEHZAD (LWVC)

Marketing strategy of coca cola 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 its 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 CocaCola 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, The Coca-Cola Company merged some of its company-owned 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

http://www.scribd.com/doc/10552013/Coca-Cola-Marketing-Strategies

Background
Coca-Cola, the corporation nourishing the global community with the worlds largest selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year interruption, giving a new thumbs up to the Indian soft drink market. In the same year, the Company took over ownership of the nations top soft-drink brand and bottling network. Its no wonder our brands have assumed an iconic status in the minds of the worlds consumers.
http://www.coca-colaindia.com/aboutus/aboutus_ccindia.aspx

Pestle analysis of coca cola

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STUDENT NAME/FAHEEM SHEHZAD (LWVC)

Political
The legal and political issues associated with Coca Cola Company are almost the same as for all the companies and all registered brands mainly related with consumer rights, competition and health and safety measures. Due to the intense competition in the industry, governments are closely monitoring the competition as firms merge and expand in the hope of dominating growing international markets. It is alleged that Coca Cola has been enticing retailers from selling other brands by giving incentives in order to increase market share. This is the reason for several legislations. Some social issues with the Coca Cola Company are mainly related with promotional environmental and friendly company aspects. Economic Foreign environmental factors have influenced the Coca Colas strategies in international marketing. Coca Cola introduced many initiatives to attract the consumer. Consumers have become more attracted to the sport energy drink. Diet coke is the best innovation of the Coca Cola Company and has achieved the largest proportion of beverages market share. The company has consumers in over 200
countries.

Social
With the eastern countries like China and Taiwan had to be replaced by products such as Asian Tea and fermented milk drinks. This needed a lot of research and development Language is one of the aspects of culture where Coca Colas carbonated drinks that did not find favour.

Technological
Coca Cola introduced ways by which the consumer can obtain their product quite easily, by the introduction of dispensing machines and vending machines.

The Marketing strategy of coca cola

The strength of Coca colas bottling system allows for infinite growth in the global market. Therefore, they have the resources available for this opportunity but they must develop marketing strategies that have local appeal as this is essential to their success. Through their strong brand reputation and their vast marketing experience, Coca Cola have the ability to extend the recognition of their brand and logo. However it would be best to leverage brand impartiality and their financial resources, to accelerate global market penetration with a view to long term profits. With the threat of political and economic instability in many less developed countries, and many of these markets not performing to expectations. Coca Cola must consider each countries unique cultural, political, legal and economic environment in order to maintain and extend their market share. With the threat of changing attitudes in consumer health consciousness, it may be advisable for Coca Cola to further resource their fruit drink product lines as this market sector is growing rapidly. In laying out an appropriate marketing mix, the organization has to consider the product, distribution, promotion and price. developing a marketing mix for each customer group In a fairly saturated slow moving beverage industry if Coca Cola can diversify and then expand on these products globally while at the same time, having great local 2

STUDENT NAME/FAHEEM SHEHZAD (LWVC) focus and strategies to increase the number of consumers buying their products, they would gain a huge market share and a great competitive advantage, that would allow for greater long- term profits and increase dominations into the next century.
http://www.docshare.com/doc/8487/An-Analysis-of-The-Coca-Cola-Companys-Markets (Dibbs S., Simkin L. The Marketing Casebook. (2002). 2nd Edition. Thomson Learning. London. Philip Kotler, Gary Armstrong- Principles of Marketing (2006) 11th Edition. Prentice Hall. http://.www.open2.net/money/brief_coca_cola.htmlwww.businessballs.com.)

Swot analysis of coca cola STRENGTHS

DISTRIBUTION NETWORK The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.

STRONG BRANDS The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thumps Up and Maaza add up to the brand name of the Coca-Cola Company as a whole. The red and white CocaCola is one of the very few things that are recognized by people all over the world. Coca-Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Inter brand. It was estimated that the Coca-Cola brand was worth $70.45billion.
(http://news.bbc.co.uk/1/hi/business/4706275.stm)

LOW COST OF OPERATIONS The production, marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs.

WEAKNESSES
LOW EXPORT LEVELS The brands produced by the company are brands produced worldwide thereby making the export levels very low. In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a nongovernmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola, 3

STUDENT NAME/FAHEEM SHEHZAD (LWVC) contained toxins including lindane, DDT, malathion and chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune system. Therefore, people abroad, are apprehensive about Coca-Cola products from India.

OPPORTUNITIES

LARGE DOMESTIC MARKETS The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led by Limca. The company appointed 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 and this also covered 3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the beverage market. EXPORT POTENTIAL The Company can come up w new products which are not manufactured abroad, like Maaza etc. and export them to foreign nations. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market.

HIGHER INCOME AMONG PEOPLE Development of India as a whole has led to an increase in the per capita income thereby causing an increase in disposable income. Unlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their income. The beverage industry can take advantage of such a situation and enhance their sales.

THREATS

IMPORTS As India is developing at a fast pace, the per capita income has increased over the years and a majority of the people are educated, the export levels have gone high. People understand trade to a large extent and the demand for foreign goods has increased over the years. If consumers shift onto imported beverages rather than have beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company.

TAX AND REGULATORY SECTOR

The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. When a license is issued, the production capacity is mentioned on the license and every time the production capacity needs to be increased, the license poses a proble

STUDENT NAME/FAHEEM SHEHZAD (LWVC)

COMPETITORS
The competitors to the products of the company mainly lie in the non- alcoholic beverage industry consisting of juices and soft drinks. The key competitors in the industry are as follows: PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company never ends for the World's # 2, carbonated soft- drink maker. The company's soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage; PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the rest belongs to Pepsi. Nestl: Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. The flavored milk products also have become substitutes to the products of the company due to growing health awareness among people.

Dabu:
Dabur in India, is one of the most trusted brands as it has been operating ever since times and people have laid all their trust in the Company and the products of the Company. Apart from food products, Dabur has introduced into the market Real Juice which is packaged fresh fruit juice. These products give a strong competition to Maaza and the latest product Minute Maid Pulpy Orange. (http://www.scribd.com/doc/4075259/Coca-Cola-Report )

References
http://www.scribd.com/doc/10552013/Coca-Cola-Marketing-Strategies http://www.coca-colaindia.com/aboutus/aboutus_ccindia.aspx

http://www.docshare.com/doc/8487/An-Analysis-of-The-Coca-Cola-CompanysMarkets

STUDENT NAME/FAHEEM SHEHZAD (LWVC)

http://.www.open2.net/money/brief_coca_cola.htmlwww.businessballs.com.)

(http://news.bbc.co.uk/1/hi/business/4706275.stm)

(http://www.scribd.com/doc/4075259/Coca-Cola-Report) (Dibbs S., Simkin L. The Marketing Casebook. (2002). 2nd Edition. Thomson Learning. London. Philip Kotler, Gary Armstrong- Principles of Marketing (2006) 11th Edition. Prentice Hall