Product life cycle of

PRODUCT LIFE CYCLE

The product life-cycle theory is an theory that was developed by Raymond Vernon in 1966. All products have a particular life span, which is called the product life cycle The Product Life Cycle (PLC) is used to map the lifespan of a product. There are generally four stages in the life of a product. These four stages are the Introduction stage, the Growth stage, the Maturity stage and the Decline stage.

HISTORY OF COCA COLA

SWOT ANALYSIS.
STRENGTHS
The best global brand in the world in terms of value ($77,839 billion) Worlds largest market share in beverage. (about 40%). Strong marketing and advertising, more than $3 billion in 2012 Most extensive beverage distribution channel. Customer loyalty. Bargaining power over suppliers.

WEAKNESSES
Significant focus on carbonated drinks Undiversified product portfolio. High debt level due to acquisitions Negative publicity. Brand failures or many brands with insignificant amount of revenues

Corporate social responsibility

SWOT ANALYSIS
OPPORTUNITY
Bottled water consumption growth.
Increasing demand for healthy food and beverage. Growing beverages consumption in emerging markets. Growth through acquisitions Competition from PepsiCo.

THREAts
Changes in consumer preferences Water scarcity.
Legal requirements to disclose negative information on product labels. Decreasing gross profit and net profit margins

STAGES OF PLC
1

INTRODUCTION STAGE
GROWTH STAGE MATURITY STAGE

DECLINE STAGE

FEATURES OF INTRODUCTION STAGE

MARKETING OBJECTIVE : Create product awareness & trail.
CHARACTERISTICS
sales Cost Profits Customers Competitors

INTRODUCTION STAGE
Low High per unit Negative Innovators few

COCA COLAS INTRODUCTION STAGE

One afternoon, JOHN PEMBERTON, an Atlanta pharmacist, stirred up a fragrant, caramel-colored liquid and, when it was done, he carried it a few doors down to Jacobs' Pharmacy. Here, the mixture was combined with carbonated water and sampled by customers who all agreed - this new drink was something special. JACOBS' Pharmacy put it on sale for five cents (about 3p) a glass. However, PEMBERTON had no idea how to advertise. This is where Frank Robinson came in. He registered Coca-Cola's formula with the patent office, and he designed the logo. He also wrote the slogan, "The Pause That Refreshes.

In the first year , the company sold 9 glasses of per day. The total revenue of first year was $56 but the cost incurred was $70.

MARKETING STRATEGIES
The first advertisement for coca cola appeared in THE ATLANTA JOURNAL

A BORN SALESMAN
ASA CANDLER, a natural born salesman, transformed Coca-Cola from an invention into a business. He knew there were thirsty people out there, and Candler found brilliant and innovative ways to introduce them to this exciting new refreshment. Coca-Cola was a great product, and a great brand. Both needed to be protected. Advertising focused on the authenticity of Coca-Cola, urging consumers to 'Demand the genuine' and 'Accept no substitute'. He gave away coupons for complimentary first tastes of Coca-Cola, and outfitted distributing pharmacists with clocks, urns, calendars and apothecary scales bearing the Coca-Cola brand. People saw Coca-Cola everywhere, and the aggressive promotion worked. By 1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles. in 1899, two lawyers, Benjamin Thomas and Joseph Whitehead, secured exclusive rights from Candler to bottle and sell the beverage - for the sum of only one dollar. .

 The company also decided to create a distinctive bottle shape to assure people they were actually getting a real Coca-Cola. As the country roared into the new century, The Coca-Cola Company grew rapidly, moving into Canada, Panama, Cuba, Puerto Rico, France, and other countries and US territories. In 1900, there were two bottlers of Coca-Cola; by 1920, there were about 1,000.

FEATURES OF GROWTH STAGE

CHARACTERISTICS
SALES

GROWTH STAGE
RAPIDLY RISING SALES AVERAGE COST PER CUSTOMER RISING PROFITS

COST

PROFIT EARLY ADOPTER CUSTOMERS GROWING NUMBERS COMPETITORS

GROWTH STAGE OF COCA COLA

In 1899 13 years after Atlanta pharmacist Dr. John Pemberton began producing Coca-Cola syrup for sale in fountain drinks two Chattanooga businessmen secured exclusive rights to bottle and sell Coca-Cola for most of the United States. Recognizing the need to create a bottler network, Benjamin F. Thomas and Joseph B. Whitehead, with the support of businessman John T. Lupton, began granting other entrepreneurs bottling franchise rights. The first franchise began operations in 1901, serving parts of Tennessee and other nearby locations under the ownership of Mr. Thomas and James F. Johnston. 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 forming Coca-Cola Enterprises Inc. (CCE).

1920S AND 1930S INTERNATIONAL EXPANSION

In 1923, four years after his father Ernest purchased the company from ASA CANDLER , woodruff became the president of the coca cola . Woodruff was a marketing genius, who saw opportunities for expansion everywhere. He led the expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the Olympic Games for the first time when Coca-Cola travelled with the US team to the 1928 Amsterdam Olympics Woodruff pushed development and distribution of the six-pack and many other innovations that made it easier for people to drink Coca-Cola at home or away. This new thinking made Coca-Cola not just a huge success, but a big part of people's lives.

1940S POST-WAR GROWTH

In 1941, America entered World War II. Thousands of men and women were sent overseas. Woodruff ordered that 'every man in uniform gets a bottle of Coca-Cola for five cents, wherever he is, and whatever it costs the company. In 1943, General Dwight D Eisenhower sent an urgent cablegram to Coca-Cola, requesting shipment of materials for 10 bottling plants. Woodruff's vision that Coca-Cola be placed within 'arm's reach of desire' was coming true - from the mid-1940s until 1960, the number of countries with bottling operations nearly doubled.

A WORLD OF CUSTOMERS (1960-1981)

After 70 years of success with one brand, Coca-Cola, the company decided to expand with new flavors. Fanta, originally developed in the 1940s, was introduced in the 1950s, while Sprite followed in 1961, with TAB in 1963 and Fresco in 1966. The company's presence worldwide was growing rapidly, and year after year, Coca-Cola found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey and more. Advertising for Coca-Cola, always an important and exciting part of its business, really came into its own in the 1970s, and reflected a brand connected with fun, friends and good times. The international appeal of Coca-Cola was embodied by a 1971 commercial, where a group of young people from all over the world gathered on a hilltop in Italy to sing I'd Like To Buy The World A Coke.

 The 1980s - the era of legwarmers, headbands and the fitness craze, and a time of much change and innovation at The Coca-Cola Company. In 1981, ROBERTO C GOIZUETA became chairman of the board of directors and CEO of The Coca-Cola Company. ROBERTO completely overhauled the company with a strategy he called 'intelligent risk taking'. He also led the introduction of Diet Coke, the very first extension of the Coca-Cola trademark. Within two years, it had become the top low calorie drink in the world, second in success only to Coca-Cola. in 1985, company release a new taste for Coca-Cola, the first change in formulation in 99 years. In taste tests, people loved the new formula, commonly called New Coke. In the real world, they had a deep emotional attachment to the original, and they begged and pleaded to get it back. Critics called it the biggest marketing blunder ever. Coca-Cola listened, and the original formula was returned to the market as Coca-Cola Classic, and the product began to increase its lead over the competition - a lead that continues to this day.

DIET COKE AND NEW COKE

NEW MARKETS AND BRANDS

The 1990s were a time of continued growth for The Coca-Cola Company. The company's long association with sports was strengthened during this decade, with ongoing support of the Olympic Games, FIFA World Cup football, and the National Basketball Association. The year 1993 saw the introduction of the popular Always Coca-Cola advertising campaign, and the world met the lovable Coca-Cola Polar Bear for the first time.

New markets .......(1993)

New markets opened up as Coca-Cola products were sold in East Germany in 1990 and returned to India in 1993. New beverages joined Coca-Cola's line-up, including Powerade sports drinks and Oasis fruit drinks. Coca-Cola's family of brands further expanded through acquisitions, including LIMCA, MAAZA AND THUMS Up in India, Inca Kola in Peru, and Cadbury Schweppes beverage brands in more than 120 countries around the world. By 1997, Coca-Cola already sold one billion servings of its products every day, yet knew that opportunity for growth was still around every corner.

FEATURES OF MATURITY STAGE

CHARACTERISTICS
Sales

MATURITY STAGE
Sales begin to stabilize Low cost per customers High profits Middle majority Stable number , beginning to decline

Cost

Profit Customers competitors

Financial data of coca cola company (2013)

Net income fell to $2.68 billion, or 59 cents a share, from $2.79 billion, or 61 cents, a year earlier in 2nd quarter of 2013. Third quarter volume grew 2% and year-to-date volume grew 2%. CocaCola Americas grew 1% in both the quarter and year to date and Coca-Cola International grew 3% in both the quarter and year to date. Reported net revenues declined 3% in the third quarter and 2% year to date. Excluding the impact of structural changes, comparable currency neutral net revenues grew 4% in the quarter and 3% year to date. Reported operating income declined 12% in the third quarter and 6% year to date.

 The last decade marked an increase in Coca-Cola's efforts to create a sustainable framework for the future. In 2009, the company launched Live Positively - a public commitment to making a positive difference in the world by redesigning the way we work and live so that sustainability is part of everything we do. Live Positively includes goals for providing and tailoring beverages for every lifestyle, supporting active, healthy living programme ,building sustainable communities, reducing and recycling our packaging, cutting our carbon emissions, establishing a sustainable water operation and creating a safe, inclusive work environment for all. The company has continued to build on existing relationships with global sports events such as the 2010 FIFA WORLD CUP and prepare for the London 2012 Olympics games, and the company continued to nurture our affiliation with the Special Olympics, which began in 1968. Coca-Cola has remained dedicated to offering quality drinks for every lifestyle and occasion, marketing those beverages responsibly and providing information that consumers can trust.

COCA COLAS CAMPAIGN

JO CHAAHO HO JAAYE:
Coca Cola Enjoy was one of the companys first campaigns in India. It was remarkably well executed, and appealed both at a product level as well as at an emotional level. These ads featured celebrities such as HRITHIK ROSHAN and AISHWARYA RAI. The target segment for Coca Cola in its initial days was the youth segment and this campaign clearly connected well with the segment. However, the next advertising campaign of THANDA MATLAB COCA COLA was launched with an objective to have a mass appeal. The campaign leveraged the product platform rather than the emotional platform that it had established earlier.

THEMES FOR COCA COLA ADVERTISING

Delicious and Refreshing (1904)

Good to the Last Drop (1907)

Thirst Knows No Season.(1922)

Refresh Yourself.(1924)

It had to be good to get where it is,(1926)

The Pause That Refreshes.(1929)

Things Go Better with Coke (1963)

When Coca-Cola Is a Part of Your Life, You Can't Beat the Feeling

 The Coca-Cola Company operates in more than 200 countries and markets more than 500 brands and 3,500 beverage products

Today coca cola serving 1.8 billion customers a day , ( in 1886 this figure was 9 per day) 94% population recognize the red and whit logo of coca cola. Coca cola holds a largest market share ,40% in beverage industry. Companys revenue in year 2012 was $ 48.01 billion , and net profit was 9.01 billion.