Top Banner
PROJECT REPORT ON STRATEGIC MANAGEMENT OF COCA-COLA COMPANY SUBMITTED BY: PRIYA PAWAR SUBMITTED TO: PROF. CONTENTS EXECUTIVE SUMMARY CHAPTER 1 INTRODUCTION CHAPTER 2 INDUSTRY PROFILE CHAPTER 3 COMPANY PROFILE COCA-COLA COMPANY GLOBAL MARKET SHARE OF COCA-COLA TRENDS AND FORCES POTER’S FIVE FORCES
61

COCA COLA STRATEGIC MANAGEMENT REPORT

Dec 08, 2015

Download

Documents

Rakhi Kadam

PROJECT REPORT ON COCA COLA COMPANY
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: COCA COLA STRATEGIC MANAGEMENT REPORT

PROJECT REPORT ON

STRATEGIC MANAGEMENT OF

COCA-COLA COMPANY

SUBMITTED BY:

PRIYA PAWAR SUBMITTED TO:

PROF.

CONTENTS

EXECUTIVE SUMMARY

CHAPTER 1 INTRODUCTION

CHAPTER 2 INDUSTRY PROFILE

CHAPTER 3 COMPANY PROFILE

COCA-COLA COMPANY GLOBAL MARKET SHARE OF COCA-COLA TRENDS AND FORCES POTER’S FIVE FORCES PESTLE ANALYSIS SWOT ANALYSIS COCA-COLA INDIA PRODUCTS IN INDIA MARKETING MIX

Page 2: COCA COLA STRATEGIC MANAGEMENT REPORT

PESTLE ANALYSIS SWOT ANALYSIS

CHAPTER 4 RESEARCH METHODOLOGY

CHAPTER 5 DATA ANALYSIS

CHAPTER 6 SUGGESTIONS AND CONCLUSION

BIBLIOGRAPHY

ANNEXURE

EXECUTIVE SUMMARY

This report has been prepared with a specific purpose in mind. It outlines the history and

current scenario of the Coca-Cola Company globally and locally. The first part of the study

takes us through the present state of affairs of the beverage industry and Coca-Cola Company

globally.

The report contains a brief introduction of Coca Cola Company and Coca-Cola India and a

detailed view of the tasks, which have been undertaken to analyze the market of Coca-Cola

i.e. we have performed Competitive, PESTLE and SWOT analysis of Coca-Cola Company

and PESTLE and SWOT analysis of Coca-Cola India in order to identify areas of potential

growth for Coca-Cola. We have also given a brief description of Trends and Forces that are

affecting Coca-Cola Company globally.

The main objective of this project report is to analyze and study in efficient way the current

position of Coca- Cola Company. The study also aims to perform Market Analysis of Coca-

Cola Company & find out different factors effecting the growth of Coca-Cola. Another

objective of the study was to perform Competitive analysis between Coca-Cola and its

competitors. Apart from these objectives this study is also conducted to understand the

Customer preferences towards various Coca-Cola products.

1.

Page 3: COCA COLA STRATEGIC MANAGEMENT REPORT

INTRODUCTION

INTRODUCTION TO COCA-COLA

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,

Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer

and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly

400 beverage brands. It sells beverage concentrates and syrups to bottling and canning

operators, distributors, fountain retailers and fountain wholesalers. The Company’s beverage

products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-

ready-to-drink powder products. In addition to this, it also produces and markets sports

drinks, tea and coffee. The Coca- Cola Company began building its global network in the

1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-

Cola system has successfully applied a simple formula on a global scale: “Provide a moment

of refreshment for a small amount of money- a billion times a day.”

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and

pervasive production and distribution system in the world. More than anything, that system is

dedicated to people working long and hard to sell the products manufactured by the

Company. This unique worldwide system has made The Coca-Cola Company the world’s

premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola,

more than any other consumer product, has brought pleasure to thirsty consumers around the

globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for

hundreds of millions of people every day.

2.

INDUSTRY PROFILE

Page 4: COCA COLA STRATEGIC MANAGEMENT REPORT

INDUSTRY PROFILE

A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG)

are products that have a quick turnover and relatively low cost. Consumers generally put less

thought into the purchase of FMCG than they do for other products.

The Indian FMCG industry witnessed significant changes through the 1990s. Many players

had been facing severe problems on account of increased competition from small and

regional players and from slow growth across its various product categories. As a result, most

of the companies were forced to revamp their product, marketing, distribution and customer

service strategies to strengthen their position in the market.

A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA

In India, beverages form an important part of the lives of people. It is an industry, in which

the players constantly innovate, in order to come up with better products to gain more

consumers and satisfy the existing consumers.

Page 5: COCA COLA STRATEGIC MANAGEMENT REPORT

Fig 2.0 BEVERAGES IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the

right product to the right person. The different ways of segmenting it are as follows:

Alcoholic, non-alcoholic and sports beverages.

Natural and Synthetic beverages.

In-home consumption and out of home on premises consumption.

Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.

Segmentation based on the amount of consumption i.e. high levels of consumption

and low levels of consumption.

3.

COMPANY PROFILE

COMPANY PROFILE

BEVERAGES

ALCOHOLIC NON-ALCOHOLIC

CARBONATED

COLA NON-COLA

NON-CARBONATED

NON-COLA

Page 6: COCA COLA STRATEGIC MANAGEMENT REPORT

MISSION:

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.

GLOBAL MARKET SHARE OF COCA-COLA

Page 7: COCA COLA STRATEGIC MANAGEMENT REPORT

In 2009, the company generated revenues of $31 billion with $6.8 billion net income. An

increased consumer preference for healthier drinks has resulted in slowing growth rates for

sales of carbonated soft drinks (abbreviated as CSD), which constitutes 78% of KO’s sales.

KO’s profits are also vulnerable to the volatile costs for the raw materials used to make

drinks - such as the corn syrup used as a sweetener, the aluminium used in cans, and the

plastic used in bottles. Finally, Coca-Cola earns approximately 75% of revenue from

international sales, exposing it to currency fluctuations, which are particularly adverse with a

stronger U.S. Dollar (USD).

Despite these challenges, Coca-Cola has remained profitable. Though the non-CSD market is

growing quickly, the traditional CSD market is still large in terms of both revenues and

volume and highly lucrative. The size and variety of KO’s offerings in the CSD category,

coupled with the unparalleled brand equity of the Coca-Cola trademark, has allowed KO to

maintain its share of this important market. KO has also responded to consumers’ changing

tastes with new, non-CSD product launches and acquisitions such as that of Glaceau in 2007.

Strong international growth has also more than offset a weak domestic market.

In March 2010, Coca-Cola Company entered into discussions to buy the Russian juice

company, OAO Nidan Juices. The company is 75% owned by a private equity firm in

London and 25% by its Russian founders and controls 14.5% of the Russian juice market. If

successful, the purchase would add to Coca-Cola's 20.5% market share, passing Pepsi's 30%

market share.

In April 2010, Coca-Cola Company purchased a majority share of Innocent, the British fruit

smoothen maker. Last year the company bought an 18% share of the company for more than

$45 million, and recent purchases of additional shares increased Coke's stake to 58%.

In June 2010, Coca-Cola Company agreed to pay Dr Pepper Snapple Group (DPS) $715

million for the continued right to sell their products following the company's acquisition of

Coca-Cola Enterprises (CCE). The deal covers the next 20 years with an option to renew for

an additional 20 years.

TRENDS AND FORCES

The Global Economic Recession Threatens Overall Demand:

In 2008 and 2009, the global economy has fallen into a recession. Not just the United States

but countries from all over the world have felt the impacts of the 2008 Financial Crisis. This

Page 8: COCA COLA STRATEGIC MANAGEMENT REPORT

may be a problem for Coke, which derives approximately 75% of its sales from outside North

America.

New Aversion to Soda Threatens Main Business:

74% of the Coca Cola Company's products are classified as carbonated soft drinks, making it

particularly sensitive to changes in demand for CSD. Consumer demand for CSD has been

negatively affected by concerns about health and wellness. This is true across most of KO's

markets. There has been an increase in the number of regulations regarding CSD in the

United States in response to the heightened desire for healthy food consumption.

.

Though KO has been somewhat slow to respond to this shift in consumer preferences, it has

recently begun to increase its development of both diet CSD and non-CSD beverages. KO is

faced with the task of balancing the risk of new innovations with the low growth rates of

established brands, a predicament for manufactures throughout the beverage industry.

Integrated Bottler Strategy Increases Flexibility:

After CEO Neville Isdell was brought out of retirement in 2004 to revive the then flagging

beverage maker, one of the first areas that he targeted for improvement was KO's frayed

relations with its extensive network of bottlers. Isdell sees these agreements as another way

of taking advantage of the rapidly growing non-CSD market.

Bottled Water Falling Out of Favour:

In Q3 2009, Dasani bottled water's revenues fell by double digits; this decrease is emblematic

of the bottled water industry as a whole. In August 2009, the Wall Street Journal reported that

sales of bottled water had fallen for the first time in five years. The combination of the

recession and upper class consumers' increased environmental consciousness has lead many

customers to cut back on bottled water in favour of tap water and reusable containers.

Dollar Affects International Performance:

Page 9: COCA COLA STRATEGIC MANAGEMENT REPORT

Another trend affecting Coca-Cola is the relative strength of the U.S. Dollar (USD). Although

the company is based in the US, KO derives about 75% of its operating income from outside

United States. Thus, if the dollar strengthens (as it did in the second half of 2008 and 2009), it

has a negative effect on KO's earnings. Coca-Cola executives expect currency fluctuations to

adversely affect 3Q09 operating income by 10-12% and 4Q09 operating income by high

Commodity Cost Fluctuations Affect Margins:

The Coca-Cola Company’s profitability can be affected both directly and indirectly by the

costs of various production inputs. KO itself is responsible for purchasing the raw materials

used to make its concentrates and syrups. Variations in the prices for these goods can affect

the company’s total cost of production as well as its profit margins. Changes in the

production costs of bottlers can also impact KO’s profitability, though in a more indirect way.

If the raw materials necessary for bottling become more expensive, the bottler may be forced

to drastically raise prices to compensate.

S

uch a price increase would likely hurt KO, given the competitive nature of the non-alcoholic

beverage industry, and provide a possible incentive for consumers to switch to other

companies’ beverages.

Aluminium, corn, and PET resin are three examples of such production goods used by

bottlers that could have significant bearing on the Coca-Cola Company’s profit margins. In

2007, the prices of these commodities rose drastically with general commodities bubble and

dramatically pressured margins. They receded in 2008, but the possibility of another

significant rise in Commodities represents a constant threat to profits.

Page 10: COCA COLA STRATEGIC MANAGEMENT REPORT

POTER’S FIVE FORCES

PESTEL ANALYSIS OF COCA- COLA

PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. It

is a tool that helps the organisations for making strategies and to know the EXTERNAL

environment in which the organisation is working and is going to work in the future.

Coca-Cola beverage, which is the leading manufacturer and distributor of non-alcoholic

drinks also need to undergo this PESTLE analysis to know about the external environment

(especially their competitors and the opportunities available) in order to keep pace with the

fast growing economy.

Page 11: COCA COLA STRATEGIC MANAGEMENT REPORT

Political Analysis:

Political factors are how far a government intervenes in the operations of the company. The

political factors may include tax policy, trade restrictions, environmental policy, laws

imposed on the recruiting labours, amount of permitted goods by the government and the

service provided by the government.

Moreover, if there is any unrest or changes in the government and any kind of protest by the

political activists may decline the demand for the products. Also the situations like the unsure

conditions prevailing in Iraq and escalation of the terrorist activities in these areas could

affect the international market of our product. It creates an inability for the company to

penetrate in the markets of such countries.

Economic Factors:

The economic factors analyze the potential areas where the firm can grow and expand. It

includes the economic growth of the country, interest rates, exchange rates, inflation rates,

wage rates and unemployment in the country.

This comes as additional cost for the company which cannot be reflected in the price of the

final product as the competition and risk in this segment is higher. This is a threat in the

external environment faced by the company. From the above explanation it is clearly seen

that the economic factors involves a major impact in the behaviour of the company during

various economic situations.

Social Factors:

Social factors are mainly the culture aspects and attitude, health consciousness among people,

population growth with age distribution, emphasis on safety. The company cannot change the

social factors but the company has to adjust itself to the changing society. The company

adapts various management strategies to adapt to these social trends.

Population growth rate and the age distribution is another social factor to be considered. It is

very important because non-alcoholic markets have most of its share from the children and

youngsters. Adults used to celebrate mostly with alcohol. The age distribution of the country

becomes important for the success of the product in a country.

Page 12: COCA COLA STRATEGIC MANAGEMENT REPORT

Technological Factors:

Technology plays a varied role in the soft drinks industry. The manufacturing and distribution

of the products is relatively a Low-Tech business, although the creation of a new product

with the perfect blend and taste is a science (an art in itself).

The advancement in technology in the company has led to: Introduction of new ways for the

availability of Coca-Cola, it introduced general vending machines all over the world. In

products it led to the development of new products like Cherry Coke, Diet Coke etc. The

technical advancement in the bottling industries include, introduction of recyclable and non

refillable bottles, introduction of cans which are trendy, stylish and popular among the

youngsters.

Legal Factors

The legal factors include discrimination law, customer law, antitrust law, employment law

and health and safety law. In Coca-Cola the business is subjected to various laws and

regulation in the numerous countries in which they do the business, the laws include

competition, product safety, advertising and labelling, container deposits, environment

protection, labour practices.

Various jurisdictions may adopt significant regulations in the additional product labelling and

warning of certain chemical content or perceived health consequences. These requirements if

become applicable in the future the company must be ready to accept and have necessary

changes in hand for the same.

Environment Factors

These factors include the environment such as the weather conditions and the seasons in

which people prefer to buy cool beverages. Also the company must follow the environmental

issues related to the product manufacturing, packaging and distributing in various countries.

It must adhere to the norms and market the product accordingly. Usage of renewable plastic

in the PET bottles is followed by the company strictly.

SWOT ANALYSIS OF COCA-COLA

Page 13: COCA COLA STRATEGIC MANAGEMENT REPORT

SWOT ANALYSIS OF COCA-COLA

STRENGTHES:

WORLD’S LEADING BRAND

Coca-Cola has strong brand recognition across the globe. The company has a leading brand

value and a strong brand portfolio. Coca-Cola ranks well ahead of its close competitor Pepsi

which has a ranking of 22 having a brand value of $12,690 million Furthermore; Coca-Cola

owns a large portfolio of product brands. The company owns four of the top five soft drink

brands in the world: Coca-Cola, Diet Coke, Sprite and Fanta.

Strong brands allow the company to introduce brand extensions such as Vanilla Coke, Cherry

Coke and Coke with Lemon. Over the years, the company has made large investments in

brand promotions. Consequently, Coca-cola is one of the best recognized global brands. The

company’s strong brand value facilitates customer recall and allows Coca-Cola to penetrate

new markets and consolidate existing ones.

THREATSIntense Competition.Dependence on bottling Patners.Sluggish growth of Carbonated beverages.

.

S W O T A N A L Y S I S

Page 14: COCA COLA STRATEGIC MANAGEMENT REPORT

LARGE SCALE OF OPERATIONS

With revenues in excess of $24 billion Coca-Cola has a large scale of operation. Coca-Cola is

the largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and

syrups in the world. The company’s operations are supported by a strong infrastructure across

the world. Coca-Cola owns and operates 32 principal beverage concentrates and/or syrup

manufacturing plants located throughout the world.

In addition, it owns or has interest in 37 operations with 95 principal beverage bottling and

canning plants located outside the US. The company also owns bottled water production and

still beverage facilities as well as a facility that manufactures juice concentrates. The

company’s large scale of operation allows it to feed upcoming markets with relative ease and

enhances its revenue generation capacity.

ROBUST REVENUE GROWTH IN 3 SEGMENTS

Coca-Cola’s revenues recorded a double digit growth, in three operating segments. These

three segments are Latin America, ‘East, South Asia, and Pacific Rim’ and Bottling

investments. Revenues from Latin America grew by 20.4% during fiscal 2006, over 2005.

During the same period, revenues from ‘East, South Asia, and Pacific Rim’ grew by 10.6%

while revenues from the bottling investments segment by 19.9%.

Together, the three segments of “Latin America”, “East, South Asia” and “Pacific Rim”

bottling investments, accounted for 34.8% of total revenues during fiscal 2006. Robust

revenues growth rates in these segments contributed to top-line growth for Coca-Cola during

2006.

WEAKNESS:

NEGATIVE PUBLICITY

The Coca-Cola Company has been involved in a number of controversies and lawsuits related

to its relationship with human rights violations and other perceived unethical practices. There

have been continuing criticisms regarding the Coca-Cola Company's relation to the Middle

East and U.S. foreign policy. The company received negative publicity in India during

Page 15: COCA COLA STRATEGIC MANAGEMENT REPORT

September 2006.The Company was accused by the Centre for Science and Environment

(CSE) of selling products containing pesticide residues. Coca-Cola products sold in and

around the Indian national capital region contained a hazardous pesticide residue.

SLUGGISH PERFORMANCE IN NORTH AMERICA

Coca-Cola’s performance in North America was far from robust. North America is Coca-

Cola’s core market generating about 30% of total revenues during fiscal 2006. Therefore, a

strong performance in North America is important for the company.

I

n North America the sale of unit cases did not record any growth. Unit case retail volume in

North America decreased 1% primarily due to weak sparkling beverage trends in the second

half of 2006 and decline in the warehouse-delivered water and juice businesses. Moreover,

the company also expects performance in North America to be weak during 2007. Sluggish

performance in North America could impact the company’s future growth prospects and

prevent Coca-Cola from recording a more robust top-line growth.

DECLINE IN CASH FROM OPERATING ACTIVITIES

The company’s cash flow from operating activities declined during fiscal 2006. Cash flows

from operating activities decreased 7% in 2006 compared to 2005. Net cash provided by

operating activities reached $5,957 million in 2006, from $6,423 million in 2005. Coca-

Cola’s cash flows from operating activities in 2006 also decreased compared with 2005 as a

result of a contribution of approximately $216 million to a tax-qualified trust to fund retiree

medical benefits.

The decrease was also the result of certain marketing accruals recorded in 2005.Decline in

cash from operating activities reduces availability of funds for the company’s investing and

financing activities, which, in turn, increases the company’s exposure to debt markets and

fluctuating interest rates.

Page 16: COCA COLA STRATEGIC MANAGEMENT REPORT

OPPORTUNITIES:

ACQUISITIONS

During 2006, its acquisitions included Kerry Beverages, (KBL), which was subsequently,

reappointed Coca-Cola China Industries (CCCIL). Coca-Cola acquired a controlling

shareholding in KBL, its bottling joint venture with the Kerry Group, in Hong Kong.

The acquisition extended Coca-Cola’s control over manufacturing and distribution joint

ventures in nine Chinese provinces.

GROWING BOTTLED WATER MARKET

Bottled water is one of the fastest-growing segments in the world’s food and beverage market

owing to increasing health concerns. The market for bottled water in the US generated

revenues of about $15.6 billion in 2006.

Market consumption volumes were estimated to be 30 billion litres in 2006. The market's

consumption volume is expected to rise to 38.6 billion units by the end of 2010. This

represents a CAGR of 6.9% during 2005-2010.

GROWING HISPANIC POPULATION IN U.S

Hispanics are growing rapidly both in number and economic power. As a result, they have

become more important to marketers than ever before. In 2006, about 11.6 million US

households were estimated to be Hispanic. This translates into a Hispanic population of about

42 million.

Coca-Cola has extensive operations and an extensive product portfolio in the US. The

company can benefit from an expanding Hispanic population in the US, which would

translate into higher consumption of Coca-Cola products and higher revenues for the

company.

THREATS:

INTENSE COMPETITION

Page 17: COCA COLA STRATEGIC MANAGEMENT REPORT

Coca-Cola competes in the non-alcoholic beverages segment of the commercial beverages

industry. The company faces intense competition in various markets from regional as well as

global players. Also, the company faces competition from various non-alcoholic sparkling

beverages including juices and nectars and fruit drinks. Competitive factors impacting the

company’s business include pricing, advertising, sales promotion programs, product

innovation, and brand and trademark development and protection. Intense competition could

impact Coca-Cola’s market share and revenue growth rates.

DEPENDENCE ON BOTTLING PARTNERS

Coca-Cola generates most of its revenues by selling concentrates and syrups to bottlers in

whom it doesn’t have any ownership interest or in which it has no controlling ownership

interest. In 2006, approximately 83% of its worldwide unit case volumes were produced and

distributed by bottling partners in which the company did not have any controlling interests.

As independent companies, its bottling partners, some of whom are publicly traded

companies, make their own business decisions that may not always be in line with the

company’s interests. In addition, many of its bottling partners have the right to manufacture

or distribute their own products or certain products of other beverage companies.

Such dependence on third parties is a weak link in Coca-Cola’s operations and increases the

company’s business risks.

SLIGGISH GROWTH OF CARBONATED BEVERAGES

US consumers have started to look for greater variety in their drinks and are becoming

increasingly health conscious. This has led to a decrease in the consumption of carbonated

and other sweetened beverages in the US. The US carbonated soft drinks market generated

total revenues of $63.9 billion in 2005, this representing a compound annual growth rate

(CAGR) of only 0.2% for the five-year period spanning 2001-2005.

Coca-Cola’s revenues could be adversely affected by a slowdown in the US carbonated

beverage market.

Page 18: COCA COLA STRATEGIC MANAGEMENT REPORT

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. Coca-Cola learnt that they were

competing with local drinks such as “Nimbu Pani”, “Narial Pani”, and “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.

Page 19: COCA COLA STRATEGIC MANAGEMENT REPORT

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 Country’s remotest areas.

PRODUCTS OF COCA-COLA INDIA

COCA-COLA:-

In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated

its departure. Coca-Cola made its return to the country in 1993 and made significant

investments to ensure that the beverage is available to more and more people, even in remote

and inaccessible parts of the nation.

Over the past fourteen years has enthralled consumers in India by connecting with passions of

India – Cricket, movies, music & food. Coca-Cola’s advertising campaigns “Jo Chaho Ho

Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary. In

2002.Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky

rocketed the brand to make it India’s favourite soft drink brand.

GLASS PET CAN FOUNTAIN

200ml, 300ml,

500ml, 1000ml

500ml, 1.5L, 2L,

2.25L, 500ml, 100ml

330 ml VARIOUS SIZES

Table - 1.0

LIMCA:-

Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1

sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and

lemony bite combined with the single minded proposition of the brand as the provider of

“Freshness”.

Page 20: COCA COLA STRATEGIC MANAGEMENT REPORT

Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from “Nimbu” +

“Jaise” hence Lime Sa, Limca has lived up to its promises of refreshment and has been the

original thirst choice of millions of customers for over 3 decades.

GLASS PET CAN FOUNTAIN

200ml, 300ml,

500ml, 1000ml

500ml, 1.5L, 2L,

2.25L, 500ml, 100ml

330 ml VARIOUS SIZES

Table - 1.1

THUMS UP:-

Thums up is a leading sparkling soft drink and most trusted brand in India. Originally

introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up

is known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude.

This brand clearly seeks to separate the men from the boys.

GLASS PET CAN FOUNTAIN

200ml, 300ml,

500ml, 1000ml

500ml, 1.5L, 2L,

2.25L, 500ml, 100ml

330 ml VARIOUS SIZES

Table - 1.2

SPRITE:-

Sprite a global leader in the lemon lime category is the second largest sparkling beverage

brand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a

true teen icon.

Page 21: COCA COLA STRATEGIC MANAGEMENT REPORT

RGB PET CAN FOUNTAIN

200ml, 300ml 500ml, 600ml,

1250ml, 1500ml,

2000ml, 2250ml

330 ml VARIOUS SIZES

Table – 1.3

FANTA:-

Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong

market place and is identifies as “The Fun Catalyst”. Perceived as a fun youth brand, Fanta

stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings

but also helps free spirit thus encouraging one to indulge in the moment. This positive

imagery is associated with happy, cheerful and special times with friends.

GLASS PET CAN FOUNTAIN

200ml, 300ml 500ml, 1.5L, 2L,

2.25L, 500ml, 100ml

330 ml VARIOUS SIZES

Table – 1.4

MINUTE MAID PULPY ORANGE:-

The history of the Minute Maid brand goes as far back as 1945 when the Florida Food

Corporation developed orange juice powder. The company developed a process that

eliminated 80% of the water in the orange juice, forming a frozen concentrate that when

reconstitute created orange juice. They branded it Minute Maid a name connoting the

Page 22: COCA COLA STRATEGIC MANAGEMENT REPORT

convenience and the ease of preparation. Minute Maid thus moved from a powdered

concentrate to the first ever orange juice from concentrate.

The launch of Minute Maid in India (started with the south of the country) is aimed to further

extend the leadership of Coca-Cola in India in the juice drink category.

Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25 litres.

MAAZA:-

Maaza was introduced in late 1970’s. Maaza has today come to symbolise the very spirit of

mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza

is the mango lover’s first choice.

RGB PET POCKET MAAZA

200ml, 250ml 250ml, 600ml, 1.2L 200ml

Table – 1.5

KINLEY:-

The importance of water can never be understated, Particularly in a nation such as India

where water governs the lives of the millions, be it as a part of everyday ritual or as the

monsoon which gives life to the sub continent. Kinley water comes with the assurance of

safety from the Coca-Cola Company.

Available in PET 500ml and 1000ml.

GEORGIA GOLD COFFEE:-

Page 23: COCA COLA STRATEGIC MANAGEMENT REPORT

Georgia coffee was introduced in India in 2004. The Georgia gold range of Tea and coffee

beverages is the perfect solution for office and restaurant needs. Today Georgia coffee is

available at Quick-Service Restaurants, Airports, and Cinemas and in Corporate across all

major metros in India.

HOT BEVERAGES Espresso, Americano, Cappuccino, Caffe Latte, Mochaccino,

Hot Chocolate, Cardamon Tea.

COLD BEVERAGES Ice Teas, Cold Coffee.

Table – 1.6

MARKETING MIX OF COCA-COLA INDIA

PRODUCT:-

Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola, Fanta, Sprite,

Thums Up, Maaza, Minute Maid and Georgia Gold. Coke positioned Kinley as natural water

with the tag line “Bhoond Bhoond Mein Vishwas” (Trust in each drop of water).

In early 1999, the parent company acquired Cadbury Schweppes. As a result 12 more bottlers

were brought into CCI’s fold. This acquisition added Crush, Canada Dry and Sport Cola to

CCI’s product line. This meant CCI had three orange, clear lime and cola drinks each in its

portfolio.

PRICE:-

Coke learnt with experience that price was a strategic weapon in an emerging market like

India. An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond

the reach of many Indian customers To make it affordable, Coke introduced Kinley in 200ml

pouches for Re. 1 in selected places in Ahmadabad and 200ml water cups in Maharashtra,

priced at Rs 3 per cup in testing marketing exercise conducted in mid – 2002. In 2002 Kinley

with 35% market share had become the leader in the retail PDW segment and was

contributing 20% of CCI’s revenues.

PLACE:-

Page 24: COCA COLA STRATEGIC MANAGEMENT REPORT

Coke pushed down responsibilities from corporate headquarters to the local business units.

The aim was to effectively align CCI's corporate resources, support systems and culture to

leverage the local capabilities. Each of the six regions had on an average six bottling plants.

Each plant was headed by an Area General Manager (AGM) and held profit center

responsibility for a business territory. He reported to the RGM as well as the head of bottling

at the head quarters.

PROMOTION:-

In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The marketing

campaign positioned Coca-Cola as an international brand and did not emphasize local

association. Coke, as a deliberate strategy, decided not to spend heavily on promoting Thums

Up. The bottlers taken over by Coke also had problems adjusting to a new work culture. They

argued that CCI's lack of interest in promoting Thumps Up was resulting in falling sales and

asked CCI to take corrective action.

Coke is primarily targeted at young individuals over the age of twenty-five. This can be seen

by Coca-Colas advertising campaigns, which are aimed towards the young, by featuring well

known personalities popular to this age group.

In 2000, Coke wrote off investments in India, amounting to $400 Mn. The revised value of

CCI's assets after the charge was $300 mn.

. It promoted the Coke brand in Delhi, Thumps Up in Mumbai and Andhra Pradesh, and

Fanta in Tamil Nadu. Coke had plans to launch Rimzim, a spicy soda drink in North

Maharashtra.

PESTEL ANALYSIS OF COCA-COLA INDIA

PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. It

is a tool that helps the organisations for making strategies and to know the EXTERNAL

environment in which the organisation is working and is going to work in the future.

Political Factors:

Page 25: COCA COLA STRATEGIC MANAGEMENT REPORT

Historical

Coca Cola India was the leading soft drink brand in India till 1977 when it left rather than

revealing its formula to the government. They re-entered the country in 1993

Thus, Coca Cola had to be changed to Coca Cola India (and Pepsi had to be renamed to

Lehar Pepsi). However, the most controversial, and by far, the most damaging was when

Coca-Cola was forced to sign an agreement to sell 49% of its equity in order to buy out

Indian bottlers. Due to the lack of consistency in the legal aspects, more importance was

being given to lobbying the politicians.

Recent Scenario

During recent times, Coca Cola India has faced its fair share of problems. On August 5 th

2003, The Centre for Science and Environment (CSE), an activist group in India focused on

environmental sustainability issues (specifically the effects of industrialization and economic

growth) issued a press release stating: "12 major cold drink brands sold in and around Delhi

contain a deadly cocktail of pesticide residues". According to tests conducted by the Pollution

Monitoring Laboratory (PML) of the CSE from April to August, three samples of twelve

PepsiCo and Coca-Cola brands from across the city were found to contain pesticide residues

surpassing global standards by 30-36 times.

. However, there are certain positives as well, with a 22 percent increase in its unit case

volume last quarter.

Economic Analysis:

The Indian economy sustained the global economic slowdown in the previous year and has

shown a tremendous economic growth. It showed 8.6% of growth in the last quarter of 2009-

10 as compared to 5.8% same time in the previous year. It has emerged as an attractive

economy to invest in as many opportunities has been recognized.

Economic growth

India is ranked second in economic growth, just behind China. Analysts have said that India

will be the third biggest economy of the world in the coming year behind China and USA.

With economic growth many opportunities have been seen, which have attracted many

foreign investor to the company.

Page 26: COCA COLA STRATEGIC MANAGEMENT REPORT

Coca cola India returned to the country in 1993, despite few problems in the start they have

emerged as the king of soft drink industry in India. The strong economic growth of India has

resulted in coca cola to invest heavily in sales and distributive channels. It has introduced two

new products, Nimbu Fresh and an energy drink ‘Burn’.

Coca cola registered 22% growth in their unit case volume in the second quarter (April-June).

It is the 16th consecutive quarter of such growth out of which 13 are double digit. Coca cola

India’s growth is in contrast to its overall performance, the beverage king reported a growth

of just 5% (worldwide) in the same quarter.

Inflationary effects

Inflation is one of the main problems that Indian economy has been facing for a year now.

Rising prices in the food and other products doesn’t only effect the consumers it also has an

adverse effect on a company. The inflation rate for the year 2009 was recorded to be 11.49%.

As prices have gone up in India for various products, especially oil, there has been

uncertainty in decision making of almost every company. Coca cola India has also been

affected by the same; it has been forced to think about their input costs, as they have been

rising due to inflation. Their expenditure has been rising, with more costs in salaries,

distribution channels and other operating costs. Beverage industry being price competitive

market, they have not revised their product prices.

Exchange rate

The exchange rate of rupee to US Dollar has been stable but in the previous months the rate

has had a tumultuous period. Exchange rate determines at what price will the company export

its products and import whatever is required by it. The previous year, the rate of rupee to

USD touched 44, on an average it has been around 47, so the exports earned less and the

imports cost more. Therefore, coca cola India had to bear some low profitable times.

However, in the present scenario rates have reached a stable level and exports are on an

increasing trend.

Technological Analysis:

Page 27: COCA COLA STRATEGIC MANAGEMENT REPORT

Coca-Cola has started operations of its R&D facility in India, with the view of localizing its

product portfolio. The major focus would be on non carbonated drinks and flavours. The

company’s R&D team has already rolled out drinks such as Maaza aam panna and also a

Maaza mango milk drink, and is exploring options to enter new categories in India such as

juices in localised flavours, energy drinks, sports drinks and flavoured water. These

initiatives are being taken by the company to further expand their product portfolio.

With the increasing importance of 360 degree media tools and overall ad spend on social

media sets likely to grow by almost 44%, Coca-Cola has increased ad spend on the internet.

Case in point is the recent 2009 Sprite campaign, which was first launched on the internet.

Environmental Analysis:

Coca Cola has earned a title of environment friendly company and Coca Cola India too has

followed in the footsteps. Coca Cola India’s Corporate Social Responsibility (CSR), is an

initiative that prioritizes many social and environmental issues; one of them being ‘water

conservation’. They support many community based rainwater harvesting projects and help

lending conservation education.

The company has made sure that the following ideas are considered during their operations:

1. Environmental due diligence before acquiring land

2. Environmental impact assessment before commencing project

3. Ground water and environment survey before selecting the site

4. Ban on purchasing CFC emitting refrigerating equipment

5. Waste water treatment facilities

6. Compliance with all regulatory environmental requirements

7. Energy conservation programs

But later it was found that BIS had stated that pesticides should not be present or it should not

exceed 0.001 part per million. Further, the health ministry of India admitted that ‘there were

lapses in PFA regarding carbonated drinks’.

Page 28: COCA COLA STRATEGIC MANAGEMENT REPORT

GRAPH OF PESTICIDES IN SOFT DRINKS IN INDIA

Legal Analysis:

As the Indian consumer is getting more educated, the government is also paying special

attention to consumer laws. In the past, there were not so many laws protecting the benefits to

the consumer but now every business has to go by the law and fix their operations, strategies

so as to satisfy their consumers, and employees. Keeping in mind the consumer laws,

employment laws, antitrust law, discrimination laws etc. a business should plan out

everything.

Consumer Laws

In the present scenario, consumer is the king, if a product is defective, not meeting the stated

standards a consumer can complain against the manufacturer. Complaining and getting the

verdict the court has made very fast and efficient as government of India has installed new

consumers courts. Their main job is to see that the consumer benefits are being met or not.

When producing their beverages, Coca Cola India has to make sure that they have written

price, manufacturing date, expiry date, batch no, nutritional facts are written on the packed

product.

Page 29: COCA COLA STRATEGIC MANAGEMENT REPORT

Employment Laws

Ministry of Labour makes the laws for proper employment in the country. They have

stipulated norms on employing people from the country and getting expatriates in the

company as well. India has strict laws against employing child labour. Being a male

dominated society, the ministry has made sure that female employees are treated with respect

and given equal importance at the work place. Every field of work has got its own wage,

these are to meet the norms and laws set by the labour ministry. When employing anyone,

coca cola India cannot discriminate on social, regional or any racists’ basis. If it is found that

the company has been violating the law, it has to face strict action and fines.

Health and safety laws

As coca cola produces a product that is consumed by the consumer as a food item, there are

laws that the company must abide by when producing it. Ministry of Food Processing

Industries makes and oversees the laws and norms for the food processing industries.

The Indian Parliament has recently passed the Food Safety and Standards Act, 2006 that

overrides all other food related laws.

It will specifically repeal eight laws:

The Prevention of Food Adulteration Act, 1954.

The Fruit Products Order, 1955.

The Meat Food Products Order, 1973.

The Vegetable Oil Products (Control) Order, 1947.

The Edible Oils Packaging (Regulation) Order, 1998.

The Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order, 1967.

The Milk and Milk Products Order, 1992.

Essential Commodities Act, 1955 relating to food.

From now on, the act establishes a regulatory body, the Food Safety and Standards Authority

of India. Anything that coca cola makes, have to make accordingly to the laws. They have to

check the weight, volume and ingredients of the product. The export or the import of the

products by the company has to meet the quality standards stipulated by the law.

SWOT ANALYSIS OF COCA-COLA INDIA

Page 30: COCA COLA STRATEGIC MANAGEMENT REPORT

Fig 2.3 SWOT ANALYSIS OF COCA-COLA INDIA

STRENGTHES:

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 sale 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 to open bay three wheelers that can navigate the narrow alleyways

of Indian cities – constantly keep Coca-Cola brands available in every nook and corner of the

Country’s remotest areas.

STRONG BRAND IMAGE

Coke has its history of about more than a century and this prolonged sustenance has

definitely added to the brand image in the minds of the consumers and to its wallet. The

products produced and marketed by Coca-Cola India have a strong brand image.

OPPORTUNITIESLarge Domestic Markets.Export Potential.High Income among People.

THREATSImports.Tax & Regulatory Sector.Slowdown in Rural Demand.

S W O T A N A L Y S I S

Page 31: COCA COLA STRATEGIC MANAGEMENT REPORT

Strong brand names like Coca-Cola, Fanta, Thums up, Limca and Maaza add up to the brand

name of Coca-Cola Company as a whole. Coca Cola India for the first time has

come out with corporate campaign in India targeting its stakeholders.

The multimedia campaign “Little Drops of Joy " is aimed at raising the corporate

brand image of the company which took a heavy beating with a number of controversies it

faced in different domains.

The new campaign is a part of a complete restructuring exercise in the Indian arm of this

global change. Coca Cola recently announced its new corporate strategy called the “5 Pillar"

strategy. The company has identified the 5 pillars as

People.

Planet.

Portfolio.

Partners.

Performance.

LOW COST OF OPERATIONS

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. These measures have reduced the

costs of operations and increased profit margins.

WEAKNESSES:

HEALTH CARE ISSUES

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 non- governmental organization in New Delhi, said aerated waters produced by soft

drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola,

contained toxins including lindane, DDT, malathion and chlorpyrifos - pesticides that can

contribute to cancer and a breakdown of the immune system.

Page 32: COCA COLA STRATEGIC MANAGEMENT REPORT

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.

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 & 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

Page 33: COCA COLA STRATEGIC MANAGEMENT REPORT

increased, the license poses a problem. Renewing or updating a license every now and then is

difficult. Therefore, this can limit the growth of the Company and pose problems.

SLOWDOWN IN RURAL DEMAND

The rural market may be alluring but it is not without its problems: Low per capita disposable

incomes that is half the urban disposable income; large number of daily wage earners, acute

dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and

festivals and special occasions; poor roads; power problems; and inaccessibility to

conventional advertising media. All these problems might lead to a slowdown in the demand

for the company’s products.

BE THE BRAND:

Inspire creativity, passion, optimism and fun.

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.

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.

In 1892 Candler incorporated a second company, The Coca-Cola Company (the current

corporation), and in 1910 Candler had the earliest records of the company burned, further

obscuring its legal origins. By the time of its 50th anniversary, the drink had reached the status

Page 34: COCA COLA STRATEGIC MANAGEMENT REPORT

of a national icon in the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen, after

the company made minor changes in the sourcing of some ingredients.

Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall

advertisement was painted in the same year as well in Cartersville, Georgia. Cans of Coke first

appeared in 1955. In April 2007, in Canada, the name "Coca-Cola Classic" was changed back

to "Coca-Cola." The word "Classic" was truncated because "New Coke" was no longer in

production, eliminating the need to differentiate between the two. The formula remained

unchanged.

In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce

bottles sold in parts of the south-eastern United States. The change is part of a larger strategy

to rejuvenate the product's image. In November 2009, due to a dispute over wholesale prices of

Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke.

4.

RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

The main objective of the project is to analyze and study in efficient way the current position

of Coca- Cola Company.

To perform PESTLE and SWOT analysis of Coca-cola globally as well as locally. This

would help us identify areas of potential growth.

The study was aimed to perform Market Analysis of Coca-Cola Company & find out

Page 35: COCA COLA STRATEGIC MANAGEMENT REPORT

different factors effecting the growth of Coca-Cola.

Another objective of the study was to perform Competitive analysis between Coca-

Cola and its competitors.

To understand the reasons behind the purchase of Coca-Cola products.

SCOPE OF THE STUDY:-

This study basically tries to discover the current position of Coca-cola in the market. It also

tries to discover the preferences of the customers when posed with a choice between Coca-

Cola and Pepsi. It is primarily directed to the general public but was done only in New

Delhi, Noida and Greater Noida

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the needed

information. It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedure.

There are three types of objectives in a marketing research project:-

Exploratory Research.

Descriptive Research.

Casual Research.

1. Exploratory Research:-

The objective of exploratory research is to gather preliminary information that will help

define problems and suggest hypothesis.

2. Descriptive Research:-

The objective of descriptive research is to describe things, such as the market potential for

a product or the demographics and attitudes of consumers who buy the product.

3. Casual Research:-

The objective of casual research is to test hypothesis about casual and effect relationships.

Page 36: COCA COLA STRATEGIC MANAGEMENT REPORT

Based on the above definitions it can be established that this study is a Descriptive Research as

the attitudes of the customers who buy the products have been stated. Through this study we

are trying to analyze the various factors that may be responsible for the preference of Coca-

Cola products.

4. Casual Research:-

The objective of casual research is to test hypothesis about casual and effect relationships.

Based on the above definitions it can be established that this study is a Descriptive Research as

the attitudes of the customers who buy the products have been stated. Through this study we

are trying to analyze the various factors that may be responsible for the preference of Coca-

Cola products.

5.

DATA ANALYSIS

Below 20 20-30 30-40 40-50 above 50

Number of respon-dents

10 159 6 1 1

1030507090

110130150170

Respondents based on age group

Num

ber o

f res

pond

ents

2.4

Page 37: COCA COLA STRATEGIC MANAGEMENT REPORT

63%

37%

Respondents based on gender

MaleFemale

Fig 2.5

AGE GROUP & GENDER:

From Fig 2.4, we can comprehend that 90% of total respondents belong to the age group of 20-

30. This is because most of the consumers that prefer or consume Coca-Cola products belong

to this age group. About 6% belong to age group below 20 and 3% belong to age group of 30-

40.Form Fig 2.5, we come to know that the gender ratio of the total respondents is almost 2:1

(male: female).

Once a week Twice a week Thrice a

weekEveryday Rarely

05

101520253035404550

Frequency of soft drink consumption

Series1

Fig 2.6

Page 38: COCA COLA STRATEGIC MANAGEMENT REPORT

81%

12%4%3%

Weekly expenditure of coca-cola products (INR)

50-100100-150150-200Above 200

Fig 2.7

SOFT DRINK CONSUMPTION & EXPENDITURE:

From Fig 2.6, we interpret that about 48% of the total respondents consume soft drinks rarely

or once a week. About 35% respondents consume soft drinks twice or thrice a week and only

18% consumes soft drinks every day.

From Fig 2.7, we interpret that about 81% of the respondents spend only Rs. 50-100 a week on

Coca-Cola products, which is very low as compared to the global scenario. This creates a

potential growth market for Coca-Cola India. About 12% spends from 100-150 a week & 7%

spend above 150.

6.

SUGGESTIONS

AND

CONCLUSION

SUGGESTIONS

The suggestions made in this section are based on the market study conducted as part of

“Coca-Cola India”. The suggestions are arranged in order of priority, highest first.

Perform a detail demand survey at regular interval to know about the unique needs

Page 39: COCA COLA STRATEGIC MANAGEMENT REPORT

and requirements of the customer.

The company should make hindrance free arrangement for its customers/retailers to

make any feedback or suggestions as and when they feel.

The company should focus to bring some more flavors like health drinks and other

low-calorie offerings. Coca-Cola India can also introduce some fruit based drinks, as

it has already entered the energy drink arena with “Burn”.

Coca-Cola’s distribution channel is mostly through retail. Whereas the competitors also

concentrates more on the multiplexes, pubs and restaurants. Coca-Cola should try to

increase their distribution in these areas.

The company must keep a watch on its primary competitors in market in order to be

able to compete with them.

The company should use new attractive system of word of mouth advertisement to

keep alive the general awareness in the whole market as a whole.

The company should be always in a position to receive continuous feedback and

suggestions from its customers/ consumers as well as from the market and try to solve

it without any delay to establish its own good credibility.

A strong watch should be kept on distributors so that the goodwill of the BRAND

doesn’t get affected.

CONCLUSION

Though there were certain limitations in the study that was conducted. The sample allowed for

some conclusions to be drawn on the basis of analysis that was done on the data collected.

The data has clearly indicated that Coca-Cola products are more popular than the products of

Pepsi mainly because of its TASTE, BRAND NAME, INNOVATIVENESS and

Page 40: COCA COLA STRATEGIC MANAGEMENT REPORT

AVAILABILITY, thus it should focus on good taste so that it can capture the major part of

the market. The study also indicated that the consumers are satisfied with the Coca-Cola

products and purchase them without any specific occasions.

In today’s scenario, customer is the king because he has got various choices around him. If

you are not capable of providing him the desired result he will definitely switch over to the

other provider. Therefore to survive in this cutthroat competition, you need to be the best.

Customer is no more loyal in today’s scenario, so you need to be always on your toes.

BIBLIOGRAPHY

BOOKS:

Marketing Management – Kotler Philip.

Research Methodology – Kothari.

WEBSITES:

www.thecoca-colacompany.com

www.news.bbc.co.uk

www.india-server.com

www.magindia.com

www.coca-colaindia.com

www.wikiinvest.com

www.open2.net

OTHERS

Annual report of Coca-Cola 2008.

Annual report of Coca-Cola 2009.

Page 41: COCA COLA STRATEGIC MANAGEMENT REPORT

ANNEXURE

QUESTIONNAIRE

NAME:..............................................................................

GENDER:a) Male b) Female

Do you drink Soft drinks?a) Yesb) No

How often do you have soft drinks per week?a) Once a weekb) Twice a weekc) Thrice a weekd) Everydaye) Rarely

What drink comes to your mind when you think of soft drinks?a) Coca-Colab) Pepsic) Other products of Coca-Colad) Other products of Pepsie) Other drinks

What quantity do you usually prefer to buy?a) 200-250 ml Glass bottleb) 300 ml Canc) 500 ml Pet bottled) 1 litre e) 2 litre

Page 42: COCA COLA STRATEGIC MANAGEMENT REPORT

What do you feel about Coca-Cola product range?a) Excellentb) Goodc) Satisfactoryd) Below Satisfactorye) Bad

What occasions do you prefer to buy Coca-Cola products?a) Festivalsb) Picnicsc) Partiesd) Cinemase) Just like that

What is your most preferred channel for purchasing Coca-Cola products?a) Super marketsb) Retailsc) Vendor Machinesd) Pubs & Restaurantse) Multiplexes

How much do you spend on Coca-Cola products per week?a) 50-100b) 100-150c) 150-200d) Above 200

Put (X) mark in which ever you feel is appropriate?

Parameters / Product Coca-Cola Products Pepsi Products1) Branding2) Quality3) Price4) Taste5) Availability6) Satisfaction

What kind of products do you want Coca-Cola to introduce in the future?a) Fizzy Drinksb) Fruit Drinksc) Energy Drinksd) Alcoholic Drinks

Page 43: COCA COLA STRATEGIC MANAGEMENT REPORT

...............................................................................................................

Thank you!

Page 44: COCA COLA STRATEGIC MANAGEMENT REPORT