Cocacola India: A case Study and Solution

Case study report on Coca-Cola India (CCI)

Presenters: Course code: MKT 307 S.M. Sad Arefin Date: December 13,2009 Nusrat Ali Course Instructor: Md. Abul Hasnat Mr. KMR Taufique

Company Profile

• Founded in 1886 (The Coca-Cola Company)

• Global leader in non-alcoholic beverage

industry

• 92,400 employees in around 200 countries

•6,000 are directly employed in India

• Global net sales: US$ 31.94 billion (2008)

• Operating income: US$ 8.44 billion (2008)

Water

Company Profile

Soft drinks

JuicesTea & coffee

Product portfolio in India:

SWOT MatrixStrengthsS1. Solid financial resources

S2. Strong brand pull

S3. Quick and Strategic distribution

channels and system(Supply Chain)

S4. Value proposition through humor appealing

advertisements by famous actor Amir Khan

WeaknessesW1. Poor rural infrastructureW2. Different rural consumption habit and buying capacity from urban area peopleW3. Erratic power supply to most grocers in rural areas and lack of storage system of cool drinks.W4. Preferences for traditional cold beverages such as ‘lassi’ and lemon juice

OpportunitiesO1. Expansion of distributionO2. Adding more villages in its distribution network through proper promotions.O3. Launching juice and milk-based beverages for the result of growing sales volume of cola drinksO4. Acquisition on local cola producers (Choice and Tikli ) through product divisibility

ThreatsT1.High price sensitiveness

T2. High market competition among the

MNOs. (Frontal attack by Pepsi Co.)

T3. High influence of media

T4. Governmental restriction and

regulations in India

O1 O2 O3 O4 T1 T2 T3 T4 Total

S1 +++ ++ ++ +++ + ++ - - - - - - 7

S2 +++ ++ +++ ++ +++ + - - - - 10

S3 +++ +++ + + + + - - - - 6

S4 ++ ++ - - - - - + ++ 0 2

W1 -- 0 0 0 - - - - 0 0 -6

W2 - - - ++ 0 --- --- - - -9

W3 --- -- - 0 0 0 0 0 -6

W4 ++ + +++ 0 -- ++ + 0 7

Total 7 6 9 -4 -4 2 -5 -8

Confrontation matrix

MARKETING ANALYSISProduct• Diversified product line according to the demand of

market

Price• competitive price.

• Introduced ‘Chota Coke’ the 200 ml bottle at Rs. 5.

• Increased 9% to 25% sales volume in 2003 in the

rural areas

MARKETING ANALYSISPlace (distribution channel)• Strong market reputation

• bought 500 new trucks an auto rickshaws for quick

distribution

• Hub & Spoke distribution strategyPromotion• Product category positioning

• humor appealing TVCs by famous actor Aamir Khan

and others

• participation in rural festival and events

• distributed refrigerator to rural retailers

POSITIONING: COCA-COLA

POSITIONING: COCA-COLA

Followed positioning strategy• Product positioning strategy was followed by CCI• Coke was positioned by the slogan called “ Thanda Matlab Coca Cola”• Used Amir khan as the brand ambassador of Coca-Cola

Suggested Positioning Strategy : Price value postioning strategy

• Highly price sensitive market• Income discrimination is high in India• Lower income people are in the majority• Price positioning is more communicable and distinctive than others• for flat market combination of positioning strategies can be implied

Central Problem of CCI Media setbacks

•August 2003: CSE report including soft drinks as a high material of pesticides

• using grounded water in a high amount, so ecosystem had a fall

Political and social party’s became active against CCI• rural sales decreased significantly

• BBC radio broadcasted that CCI is destroying the environment of India

Central Problem of CCI

Solution:• Adopting the Holistic marketing concept

•Establish water treatment plants and source of

drinking water in drinking water crisis areas

Refferences

• Philip Kotler & Kevin Lane Keller (2009 -2010); ‘Marketing Management’, 13th

edition

• Coca-Cola in India: http://www.labournet.de/internationales/in/coke.html

• Coca-Cola Company: www.coca-cola.com

• http://www.google.com

• Class lectures

• Given case

Thank You for your attention!