Presentation on

PRESENTED BY : SHRADDHA DAVE PUNEET KASHYAP

Introduction

• Coca-Cola is a cola (a type of carbonated soft drink) sold in stores, restaurants and vending machines.It is produced by The Coca-Cola Company (United States).

• The Coca-Cola Company offers nearly more than 500 brands in over 200 countries, which shows its recognization and serves 1.6 billion servings each day.

• The Coca-Cola Company only produces concentrate syrup which is then sold to various bottlers throughout the world who hold a Coca-Cola franchise.

Company history

• The first Coca-Cola recipe was invented in Covington, Georgia, by JOHN STITH PEMBERTON, originally as a cocawine called“Pemberton's French Wine Coca’ in 1885.

• The first sales were made at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886, and for the first

eight months only nine drinks were sold each day. • It incorporated in 1892 as Coca-Cola Company (the current corporation).

COMPANY PROFILE• The Coca-Cola Company is the world's largest

beverage company, largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world.

COCA COLA INDIA• Coca-Cola was the leading soft drink brand in India until 1977

when it left rather than reveal its formula to the government and reduce its equity stake as required under the Foreign Exchange Regulation Act (FERA) which governed the operations of foreign companies in India • After a 16-years absence, Coca-Cola returned to India in 1993• Coca-Cola India started business, including new production facilities, wastewater treatment plants, distribution systems and marketing equipment.• Coca-Cola system has invested more than US$ 1 billion in India

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.”

VALUES

“Our values serve as a compass for our actions and describe how we behave in the world.

• Leadership: The courage to shape a better future• Collaboration: Leverage collective genius• Integrity: Be real• Accountability: If it is to be, it's up to me• Passion: Committed in heart and mind• Diversity: As inclusive as our brands• Quality: What we do, we do well”

QUALITY PROMISES

• Quality Is the Highest Business Objective of coca cola. They have achieved GOLDEN PEACOCK NATIONAL QUALITY AWARD 2004 in India and they are marching forward to achieve such more awards globally. Though there were many problems in quality, their quality department have taken an immediate action to ensure that consumers do not lose interest.

VARIETIES OF PRODUCT• Diet Coke (introduced in 1982), which uses aspartame, a synthetic phenylalanine-based artificial sweetener in place of sugar • Diet Coke Caffeine-Free• Cherry Coke (1985)• Diet Cherry Coke (1986)• Coke with Lemon (2001)• Diet Coke with Lemon (2001)• Vanilla Coke(2002)• Diet Vanilla Coke (2002)• Coca-Cola C2 (2004)• Coke with Lime (2004)• Aquarius Mineral Water (2004)• Diet Coke with Lime (2004)• Diet Coke Sweetened with Splenda (2005)• Coca-Cola Zero (2005)• Coca-Cola Black Cherry Vanilla(2006)• Diet Coke Black Cherry Vanilla (2006)• Coca-Cola BlāK (2006)• Diet Coke Plus (2007)• Coca-Cola Orange (2007)• Sprite• Diet Coke with Citrus Zest(2008)

DEVELOPMENT STRATEGY

The brand development strategy of Coca Cola comprised redesigning of its brand development policies and techniques to keep up with the changing mindset of its consumers. Earlier, this brand believed in the following:

• Affordability• Availability• Acceptability

PRODUCT DIVERSIFICATION STRATEGY

• Coca-Cola is the proud producer of more than 400 beverage brands with core focus on brand Coca-Cola, Diet Coke, Sprite, and Fanta.

• Coca-Cola Co. ventured into sports-drink segment in Powerade and Full Throttle and non-carbonated niche offerings such as Mad River teas and Planet Java coffee.

• However this strategy has taken a back seat due to the lukewarm response from consumers.

BROAD DIFFERENTIATION STRATEGY

• Coca-Cola uses Broad Differentiation strategy on the basis of:

1. Offering of wide range of its drink products . around 230 brands are currently being offered in the global market.

2. High brand image and recognition have resulted in superior product perception among consumers.

3. Packaging and bottling . The use of contoured shape bottle and the slim curly font have made Coca-Cola an easily recognized symbol.

SPONSORSHIP

• Coca cola had Sponsored the Olympic Torch Relay in 11 countries beginning in February 2009, leading up to the Vancouver 2010 Olympic Winter Games.• Launched the FIFA World Cup™ Trophy Tour, the Company’s first pan-Africa marketing program which touches every country in Africa over nine months. In total, the Tour will visit 89 cities in 86 countries during its134,017-kilometer journey through May 2010.

Promotional campaign

• COCA COLA had Partnered with Twentieth Century Fox on a global promotional campaign for Coca-Cola Zero® and director James Cameron’s epic-adventure and blockbuster film Avatar.

Marketing expenditure• Following amounts reflect the total worldwide amounts spent on print, radio, internet, and

television advertising. Advertising expenses included in selling, administrative and general expenses were approximately:

• 2006: $2.6 billion2005: $2.5 billion2004: $2.2 billion2003: $1.8 billion2002: $1.7 billion2001: $2.0 billion2000: $1.7 billion1999: $1.7 billion1998: $1.6 billion1997: $1.6 billion1996: $1.4 billion1995: $1.3 billion1994: $1.1 billion1993: $1.0 billion

Target market

• Targeting young minds : Coke’s commercials basically based on young generations, So, the young generation is the target market of Coke because they want to represent Coke with the youth and energy butthey also consider about the old people they take then as a co-target market.

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Targeting rural india• Coke has a new strategy and has renewed its focus on semi-urban and

rural markets in India.• The soft drink consumption market in India is mainly concentrated in

urban cities. • Large trucks for transporting stock from bottling plants to hubs and

medium commercial vehicles transported the stock from the hubs to spokes.stock from spokes to village retailers the company utilized auto rickshaws .

• It made an investment of Rs 7 million to meet rural demand. • Through its rural distribution initiatives, CCI was able to increase its presence in rural areas from a coverage of 81,383 villages in 2001 to 1,58,342 villages in August 2003

‘Parivartan’ program• The ‘parivartan’ program – Training small town retailers• Coke’s new strategy involves training retailers (around 6,000 of them) in a

program launched by the Coca-Cola University.• The company calls this the “parivartan” . Shop owners (traditional retailers)

are given training on displaying and stocking products well. • The goal of the innovative training program is to provide traditional Indian

retailers with the skills, tools and techniques required to succeed in a constantly changing retail scenario. Presentations (including audio/visual technology) in local

Hindi language help small retailers (with stores less than 200 square feet in average size) to better understand the concepts involved. Each retailer also receives a Coca-Cola “Certified Retailer” certificate at the conclusion of the program.

Adapting to local culture and taste

• Coke set up an R&D faculty in India to develop beverages that suit local taste and increase focus on localizing its portfolio of beverages. Earlier, Coca-Cola India had been outsourcing all R&D functions from its facility in Shanghai. Some examples of local flavors include Maaza aam by Coca-Cola.

Growth strategy• To portray corporate growth strategies, Coke adopted Ansoff's matrix

that focus on the firm's present and potential products and markets. There are total fourdifferent growth strategies:

1. Market penetration: A firm seeks to achieve growth with existing products in their current market segment, aiming to increase its market share.

2. Product development: The firm develops new products targeted to its existing market segment.

3. Market development: A firm seeks growth by targeting its existing products to new market segment.

4. Diversification: firm grows by developing new products for new markets.

Growth strategy in developed markets

• Company’s growth strategy in developed markets is to maximize value and profit.

• They work to grow their brands and product offerings while delivering more value to consumers so they will continue to purchase their products at a premium price.

• They are working with their bottling partners to improve and preserve customer

relationships and make their products available to consumers everywhere.

Growth strategy in developing markets

• Developing markets are expected to contribute approximately 20 percent of incremental population growth over the next 10 years.

• Their growth strategy in developing markets is to leverage the scale and reach of their system to shape and capture value.

• Their investment in developing markets is a longer-term strategy. • They also strengthen their marketing in the region through

media advertisements, billboards in high-traffic areas and connecting with consumers through mobile phone

marketing and newly established loyalty programs.

Innovation strategy

• From the added benefits of vitamins and minerals to calorie reductions, new ingredients, sweeteners and tastes, they are

constantly challenging themselves to identify high-quality additions to their portfolio.

• These efforts help them improve their connections with consumers and the overall value of their brands.

COCA-COLA FREESTYLE: MAKING CONSUMERS BEVERAGE INNOVATORS

• By giving consumers choice and variety and the opportunity to make more than 100 different branded beverages at the touch of a button.

• Coca-Cola Freestyle provides a fun, interactive experience that connects their brands with consumers.

• It revitalizes the fountain heritage of their Company by letting consumers be their own beverage innovators, with choices tailored completely to their needs.

Consumer connection strategy• To create and maintain the consumer connections they need to achieve

their 2020 growth targets, they use a marketing media framework that integrates paid, earned and owned media.

• They are engaging with consumers across the earned media landscape—from Facebook and Twitter to influential blogs, respected community voices and sustainability rating agencies.

• At the end of 2009, their “OPEN HAPPINESS” campaign was active in markets representing approximately 95% of their global COCA-COLA UNIT CASE VOLUME.

Future markets

• There is a direct correlation between the growth of per capita consumption of NARTD beverages and the growth of individual wealth and personal expenditure.

• company see strong individual wealth growth over the next 10 years in almost every market where they operate globally, with significant growth in emerging and developing markets.

• Company has ability to capture a strong share of this growth because of their current market

presence and their growth strategies for the future.

Global strategy• They plan to take up global marketing strategy through standardization

and integration of the many services to ensure uniform growth for the company “Coke” throughout the world. From now onwards Global marketing strategies will be incorporated not in a specific area or country but other country also which was neglected till now, which will get 100% recognition to the company “COKE”.

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Corporate social responsibility

• COCA COLA had Placed more than 73,000 hydrofluorocarbon-free (HFC free) coolers and ‑vending machines in markets globally, bringing our total HFC-free cold drink equipment placed in the market since 2006 to more than 115,000.

CSR

• Coca cola had Introduced plantbottle™, a redesigned polyethylene terephthalate (PET) plastic bottle made from up to 30% plant-based, renewable materials and is 100% recyclable. The bottle was piloted

with Dasani® and Coca-Cola in 2009.• They plan to have 2 billion bottles in market by the end of 2010.

• LIVE POSITIVELY™ is their commitment to making a positive difference in the world by redesigning the way they work and live so that sustainability is part of everything they do.• It includes goals, metrics and principles for their work • across seven core areas key to their business sustainability: 1. Beverage Benefits2. Active Healthy Living3. Community4. Sustainable Packaging5. Water Stewardship6. Energy Management and Climate Protection7. and Workplace.

CRITISISM OF COCA COLA

• 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.

• An issue with pesticides in groundwater in 2003 led to problems for the company when an Indian NGO, Centre for Science and Environment, announced that it had found cancer causing chemicals in Coca-Cola as well as other soft drinks produced by the company. This caused an 11 percent drop in Indian Coca-Cola sales.

CON..

• Critics claim that the company's overuse of local water supplies in some locations has led to severe shortages for regional farmers and the forced closure of some plants.

• Packaging used in Coca-Cola's products have a significant environmental impact.

• In January 2009, the US consumer group the Center for Science in the Public Interest filed a class-action lawsuit against Coca-Cola.

• Claims say that the 33 grams of sugar are more harmful than the vitamins and other additives are helpful

2009 WORLDWIDE UNIT CASEVOLUME GEOGRAPHIC MIX

28%

23%18%

16%

15%

unit case volume

latin americanorth americapacificeuropeeurasia & africa

MARKET SHARE

Financial comparison

FINANCIAL PERFORMANCE

COCA COLA

REVENUE US$ 31.0 Billion (FY 2009)

OPERATING INCOME US$8.23 Billion (FY 2009)

NET INCOME US$5.82 Billion (FY 2009)

TOTAL ASSETS US$48.7 Billion (FY 2009)

TOTAL EQUITY US$24.8 Billion (FY 2009)

Financial comparison with pepsi

25/04/2008 BETA

Coca cola 0.60

Pepsi 0.33

2010–2020 INCREMENTAL GROWTH IN BEVERAGE CATEGORIES

Goals of

• More than doubling their system revenue while increasing system margins by 2020

• Ensuring that they are the most preferred and trusted beverage partner

• Attaining global leadership incorporate sustainability

• Managing people, time and money for the greatest effectiveness

• Becoming one of the world’s premier employers

Of

Future projects• Fun Island : They are going to provide a real fun time in a private island of

coke company. this island is mainly meant for college students on a special occasion. they are going to have fun things like

-coke fountain

-coke Halloween parties

-coke games

-coca competitions

Future projects

• Cocateria: They are going to open world wide cafeteria like cocateria. Where they are going to have all the varieties of drinks only of coco cola company including refreshments.

Swot analysisStrengths•World’s largest brand•Product distribution and world wide network•Solid financial performance•Product diversification(juice,water,soft drinks,sport drinks,etc.)

Weaknesses•Negative publicity•Loyal customers compared to pepsi•Credit rating•Decline in cash from operation activities•Health issues

Opportunities•Growing bottled water market•Acquitions of smaller players•Non-carbonated drinks are fastest growing part of the industry•Has sufficient capital to expand

Threats•Image perception•Risk of cannibalizing sales•Varying growth in non-core categories•Major rivals also investing in non-carbonated drinks•Intense Competitionting partners

Porter’s five force model

Intensity of rivalry among established firms- very strong

Risk of entry by potential

competitors- extremely difficult

Bargaining power of buyers- weak

Threat of substitutes- easy to

produce

Bargaining power of suppliers- strong

Thanks !!