Case of Coca Cola Bp

8/2/2019 Case of Coca Cola Bp

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COMPANY CASECOMPANY CASE

STUDYSTUDY

SUBMITTED BY:-Deep Mukherjee

Neeraj kr. SinhaPriyanka Gautam

Shradha Biyani

Sabyasachi Ghosh

COCA-COLA


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COCA COLA

COCA-COLA

MADE BY : JOHN PEMBERTONS

The coca cola drink popularly referred to as coke ,is a kind ofcola, sweet carbonated drink containing caramel and otherflavoring agents. It was invented by DR.JOHN SMITHPEMBERTON on may 8, 1886, at Atlanta in the U.S. Thebeverages was named coca cola because it contained extractsof coca leaves and kola nuts. Frank M Robinson suggested

that it should spell coca cola instead of coca kola because thetwo Cs should look better while advertising.


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COCA-COLA

In The Olden Days

Coca-Cola sold only 25 bottles in the first year

Coca-Cola Company is the world's largest Coca-Cola

nonalcoholic beverage company.

Within our more than 400 brands are nearly 2,400

beverage products. Four of the world's top-fivebeverage products. soft-drink brands which are

formulated to appeal to local cultures and lifestyles.TODAYTODAY

300 Brands -

200 Nations


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LOCAL COMPETITORSLOCAL COMPETITORS

COUNTRY COMPETITORS BRAND

SOUTH AND KOLA REAL

CENTRAL AMERICA SWEDEN JUL MUST

SCOTLAND IRN BRU

TURKEY TURKA COLA

CHINA FUTURE COLA UK ROBINSONS DRINK

INDIA PEPSI AND THUMBS UP

COCA-COLA


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THE COCA COLA COMPANYTHE COCA COLA COMPANY

THE COCA COLA COMPANYTHE COCA COLA COMPANY

CHAIRMAN AND CEO MUHTR KENT

AREA SERVED WORLDWIDE

NET INCOME US $ 4.2 billion

COCA-COLA

HEADQUARTERS ATLANTA,

GEORGIA- USA


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COCA-COLA


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RECOGNITION OF THE BRANDRECOGNITION OF THE BRANDRECOGNITION OF THE BRANDRECOGNITION OF THE BRAND Coca cola has to face many counterfeits in the market and had to

spend huge sum of money on educating its customers on how torecognize the genuine product.

In 1916 the hobble skirt design bottle was designed by Root Glass

Company. The design became as famous as the coca cola

trademark.

In 1923 Robert Woodruff became the president of coke. He

believed in product quality and started a QUALITY DRINK .

In 1933,it introduced automatic fountain dispensers that

automatically prepared the finished drink. W

COCA-COLA

Earl R. Dean's original 1915

concept drawing of the contour Coca-Cola

bottle


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ROAD OF SUCCESS FOR COKEROAD OF SUCCESS FOR COKE

In 1980, Roberto Goizueta became the chairman of coke . It

described him as a man with global vision. In 1985 coke changed its old formula to make its product tastier

with Pepsi . Customers were vocifererous in their demand forthe original taste.

In 1982,Diet Coke was introduced as a low calorie soft drink forhealth conscious customers.

In 2005, Coca Cola had operations in over 200 countries sellingmore than 400 brands like packaged drinking water , Coffee, Juices,Tea, apart from Soft Drinks Products. The major Brands of in theworld are:

1.Coca Cola.

2.Diet Coke.

3.Fanta.

4.Sprite.

It has other popular brands such as Fruitopia, Minute Maid ,POWERrade , Dasani water

COCA-COLA


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COCA COLA CODE OF CONDUCT

Coca Cola considered its employees to be the representativeof the company and expected them to act with honesty andintegrity.

The code of conduct covers various aspect such as:

Employee ResponsibilityConflict Of Interest

Financial Record

Use OfCompany Records

Working With Customers and Suppliers

Working With Government

Protecting Information

Administration OfCode

COCA-COLA


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Market challenges in MexicoMarket challenges in Mexico

Competitor The chief competitor for coca-cola in mexico was

Pepsi .However , coca-cola also faced stiffcompetition from big cola

Strategy

Big cola was priced very low when compared to theprice of coca-cola. This low price strategy made a

big impact on the Mexican soft drinks marketbecause half of the population was poor & had lowpurchasing power.

COCA-COLA


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Business of coca colaBusiness of coca cola

TRADE PRACTICES IN MEXICO

Mexico was a very important market for coca-cola as the countrywas second, after the US ,in terms of per capital consumption ofsoft drinks in the world.

Over the years , some of the highest profit margins for coca-cola inits overseas operations came from Mexico.

Coca-cola was the no. 1 seller of soft drinks in Mexico with a 70%market share.

Coca-cola largest bottler in Mexico was coca-cola femsa (CCF) inwhich coca-cola had a 40% stake.

COCA-COLA


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Coca Cola In Indian MarketCoca Cola In Indian Market

Coca-Cola India (CCI) .The countrys largest CarbonatedSoft Drinks producer refreshes millions of consumersthrough the exciting range of beverages through anetwork of more than one million outlets

The companys product range and marketing reflect Indiantastes and lifestyles and company is deeply involved in thelife of the local communities in the country.

25 wholly- owned- company-owned bottling operations,24 franchisee-owned bottling operations.

These are only some of the facts that speak about theircommitment to the growth of the Indian Economy.

COCA-COLA


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Bottling Plant In IndiaBottling Plant In India

The Hindustan coca cola beverages pvt Ltd.had established a bottling plant at Plachimadalocality in Palakkad district in Kerala

The unit was established in 1998-99 in 40 acreplot that had previously been used forirrigation of paddy and other food crops

The factory site located in the proximity of amain irrigation cannel that drew water from anearly barrage and reservior

Coca-cola


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Issue Of Bottling Plant In IndiaIssue Of Bottling Plant In India

It was alleged that Coca Cola had dug more than 65 bore wells in the plotto extract groundwater for production and operations.

It was estimated that everyday 15 million litres of groundwater wereextracted free of cost and used for production and bottle washing.

The bottle washing operation involved the use of chemicals and effluents,leading to the contamination of groundwater.

Another by product of bottle washing was a foul smelling dry sedimentsludge waste .It was sold to farmers as a fertilizers.

It was also argued that it contains high level carcinogenic heavy metalslike calcium and lead. It was alleged that when the farmers came to knowthat its toxic and raised protests

COCA-COLA


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COCA-COLA


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Allegation face of coca colaAllegation face of coca cola

1.Coke was accused of depleting underground water sources of releasing improperly

releasing water.

2. It was reported that ground water turned turbid or milky on boiling and was unfit for

consumption.

3.The by product of the bottle washing was a foul smelling dry sediment sludge waste.

4.It was alleged that coca cola had dug more than 65 bore well in the plot to extract the

groundwater for production and operations.

5.it was estimated that everyday 15 million litres of groundwater were extracted free of

cost and used for production and bottle washing.

6.the centre foe science & environment published a report which revealed that 12 soft

drinks brands said by coca cola and Pepsi in India had pesticide level for higher than what

was permitted by European Economic commission {EEC}

7.some of the main pesticides found in the soft drink brands sold by coca cola and PepsiCOCA-COLA


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Response Of Coca ColaResponse Of Coca Cola Coca cola Rebutted the charges against its bottling plant at Plachimada, Kerala. The study

was conducted a study conducted in October 2002 by Dr. R. N. Athvale a scientist at the NGRI

which concluded that there was no evidence of over exploitation of the ground water

Another report was prepared by plalakkad district environment protection council in June

2002.They too rejected these allegations and attributed the depletion to a decrease in rainfall

over the years .

Coca Cola stated that technology used for waste water treatment at the plant was among the

most advanced in the world. The procedures for treatment and discharge of effluents

complied with standard and norms set by KSPCB.

Coca Cola said that the dry sediment slurry waste or sludge a by product of its operations was

not harmful .The sludge was made up of organic & inorganic material that would notcontaminate the land.

coca cola conducted an internal investigation and said that they found no evidence regarding

the allegation.

4.in reference to the charges against its bottling plant at plachimada, Kerala. the company said

that the plant was not responsible for the depletion of the underground waterable.COCA-COLA


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Market strategy inMarket strategy in IIndiandia

Competitor :-

Pepsi primary competitor

Nestl

Dr Pepper Snapple Group

Groupe Danone

Kraft Foods

Unilever

Pricing:-

Low disposable incomes

Most of whom are on daily wages

cannot spend much.

In 2002, Coca-cola launched CHOTA

COKE (200ml of bottles) priced at Rs 5

Communication

InIn rural and urban marketrural and urban market::

Coca-colas brand ambassador Aamir

Khan connects himself with the people

very well in rural as well as urbanmarket.

COCA-COLA


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FACTS OF COCA COLA

Coca-Cola' is the most recognizedtrademark, recognized by 94% of theworld's population

In a competition who can drink the most

coke in one go one drank 8 bottles of cokeand died on the spot

In Hong Kong it is sometimes served hot asa remedy for colds

Coca- cola was first green color. Coca-Cola is called Coca-Cola because of

the original ingredients used in themedicine, Coca leaves and Kola seeds.

COCA-COLA


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Comparison of key financials of the yearComparison of key financials of the year 20032003--20052005

YEAR `DEC 31,2005 Dec 31 ,2004 Dec 31 ,2003

Total Revenue 23,104 21,962 21,044

Gross Profit 14,909 14,324 13,282

Operating

Profit

6,085 5,698 5,221

Net Profit 4,972 4,847 4,347

COCA-COLA


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Porters 5 forces

COCA-COLA

Entry Barriers are HIGH

Rivalry among competitors HIGH

Bargaining power of suppliers

Moderate Bargaining power ofConsumers Moderate

Threat of substitute - Moderate


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SWOT AnalysisSWOT Analysis

STRENGTH

WEEKNESS

OPPORTUNITY

THREAD

COCA-COLA


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STRENGTHSTRENGTH

COCA-COLA

1. Major brand in India at that time.

2. Has his strong base of capital.

3. Already a well known brand in India & abroad.

4. Has multimillionaire stars & personality like Aamir khan as

his brand ambassador.5. Has launched its product in a very low price @ rs.5.

6. Most of the common man like this as a refresher.


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WEAKNESSWEAKNESS

COCA-COLA

1. Word of mouth is probably a strength and weakness of ever

company had its bad patch during the controversy in India

2. Change in taste and preferences.

3. Another weakness that has been greatly publicized is thehealth issues that surround some of their products.


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OPPORTUNITY

COCA-COLA

1. After coming out from controversy discovered a market of south east Asiancountries.

2. Becomes the leader in soft drinks company in India.

3. Started to give full sponsorships in many of the Indian

sports like cricket, football, etc.

4. Has got special privileges from the govt.

5 Has become the world leader since than

6. Has earned a turnover of more than Rs 4.2 billion dollars last fiscal year.

7 . Has been rated as the most safest brand in India by

ministry of health & family welfare.


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THREATTHREAT

COCA-COLA

Even though Coca Cola and Pepsi control nearly 40% of the entire

beverage market, the changing health-consciousness attitude of the market could have a

effect on Coca Cola.

In todays world, people are constantly trying to change their eating M

and drinking habits. This could directly affect the sale ofCoca Colas

products.

Other threats are of course the competition.

Coca Cola needs to be careful that Pepsi does not grow to be a more

successful drink.

Other product such as juices, coffee, and milk are threats


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COCA-COLA


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COCA-COLA

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Case of Coca Cola Bp