Professional Documents
Culture Documents
Behind every successful venture, there is some hand .I pay my all regard to all those
people who are directly or indirectly with me for the encouragement and because of
their immense help I could complete my project successfully.
In my prior list, I would like to express my profound sense of gratitude to thank Miss
Sarika Yadav(Faculty Guide) who provided sufficient concern whenever required.
I would also like to express my profound sense of gratitude to the authorities of
UNITED INSTITUE OF MANAGEMENT Naini, Allahabad especially to Mr.
ikas Mal!"tra (#ead "$ t!e De%art&e't "$ Ma'a(e&e't) for providing me better
guidance.
TA)*E OF +ONTENTS
S,.
NO.
TO-I+ -AGE
NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
OBJECTIVE OF THE STUDY
INTRODUCTION
HISTORY OF COCA COLA
ERFOR!ANCE OF THE CO!ANY
INDIAN RE"ULATORY ENVIRON!ENT
COCA COLA BUSINESS IN INDIA
SALES AND DISTRIBUTION
ADVANCE SALES # SERVICES VT. LTD.
NEED OF THE STUDY
SCOE OF THE STUDY
RESEARCH !ETHODOLO"Y
DATA ANALYSIS # INTERRETATION
S$OT ANALYSIS
ORTER 5 FORCES !ODEL
LI!ITATIONS OF THE STUDY
FINDIN"S OF THE STUDY
7
9
20
23
38
50
55
58
59
60
61
64
73
74
76
!
17.
18.
19.
CONCLUSION
SU""ESTIONS AND RECO!!ENDATIONS
BIBLIO"RAHY
77
78
79
"
O%&'()*+' ,- ).' /)012
#o check out the availability of several promotional scheme of coca$cola for
the dealers.
#o make an overall assessment of specified market to provide a better
promotional scheme for the dealers.
#o draw a comparative analysis of promotional schemes.
#o verify the market share of cola in comparison with their competitors.
#o find out whether retailer are satisfied with the replenishment system of
coke.
%
I3)4,10()*,3
4'/*1'3)5/ 4,-*6'78
Atul &ingh
'resident ( )*+,
)oca$)ola India
Atul &ingh took
over as the 'resident ( )*+, )oca$)ola India from ,st &ep. -..!. 'rior to this
assignment, Atul &ingh was the 'resident of *ast, )entral ( &outh /*)&0 )hina
1
2ivision in 3anuary -..!. 4iven the strategic importance of )hina, a 2ivision
within the greater )hina 2ivision was created. *)& )hina 2ivision consists of
&hanghai, the &wire #erritories of )hina, 5ong 6ong and #aiwan. Additionally,
Atul singh was also responsible for the global and strategic 6ey )ustomer
7elationships for 4reater )hina and was a member of the )ustomer 8eadership
)ouncil.
At )oca$)ola, we have a long stable belief that everyone who touches our
business should benefit. )oca$)ola in India provides extensive support for
community programmers across the country, with a focus on education, health ( rain
water harvesting. All key priorities of the Indian government have recogni9ed the
)ompany:s efforts with several awards.
E10(9)*,37 )oca$)ola in India is supporting community based primary education
projects set up to provide educational opportunities to marginali9ed children in slum
( villages. #ill today, the project have benefited !. schools, thousands of students,
over !..,... villagers ( over,.,... slum dwellers, as well as several villages near
bottling plants.
E3+*4,3:'3) ; )oca$)ola in India is supporting community based rainwater
harvesting projects in rural ( urban areas to help restore water level ( promote
community education in way to conserve natural resources. #hese initiatives have
benefited over ,.,... 2elhi residents, as well as local community members, both in
areas surrounding )oca$)ola bottling plants ( elsewhere.
H'96).(94'7 )oca$)ola in India is partnering with <4+:s as well as &t.3ohn:s
Ambulance Brigade /7ed )ross0 to provide free medical facilities ( information to
poor people who can not afford to visit hospital facilities. #hese efforts are helping
=
tens of thousands of underprivileged people in seven states in India, as well as
several villages near bottling plants.
#he company has also supported a range of other national initiatives, such as a major
'olio eradication drive ( drought relief programmers, in addition to support towards
the <ational )ricket )hampion for blinds ( <ational Athletics meetings for the
physically challenged.
,.
HISTORY OF COCA8COLA
John Pemberton was the inventor of Coca Cola
In >ay, ,11", )oca )ola was invented by 2octor 3ohn 'emberton a pharmacist
from Atlanta, "',4;*9. J,.3 ':%'4),3 concocted the )oca )ola formula in a three
legged brass kettle in his backyard. #he name was a suggestion given by J,.3
':%'4),3</ bookkeeper F493= R,%*3/,3.
B*4). ,- C,(9 C,69
Being a bookkeeper, ?rank 7obinson also had excellent penmanship. It was he who
first scripted @)oca$)ola@ into the following letters which has become the famous
logo of today.
,,
C,(98C,69
#he official )oca$)ola logo
T2>' )ola
!930-9()04'4 #he )oca$)ola )ompany
C,03)42 ,- O4*;*3 Anited &tates
I3)4,10('1 ,11"
R'69)'1 >4,10()/
'epsi
7) )ola
#he soft drink was first sold to the public at the soda fountain in 3acobBs 'harmacy in
Atlanta on >ay 1, ,11". About nine servings of the soft drink were sold each day.
&ales for that first year added up to a total of about C!.. #he funny thing was that it
cost 3ohn 'emberton over C%. in expanses, so the first year of sales were a loss.
In ,11%, Atlanta pharmacist and businessman, Asa )andler bought the formula for
)oca )ola from inventor 3ohn 'emberton for C-,D...
By the late ,1=.s, )oca )ola was one of AmericaBs most popular fountain
drinks, largely due to )andlerBs aggressive marketing of the product. #he )oca )ola
)ompany increased syrup sales by over ...E between ,1=. and ,=...
Advertising was an important factor in 3ohn 'emberton and Asa )andlerBs
success and by the turn of the century, the drink was sold across the Anited &tates
and )anada. At the same time, the company began selling syrup to independent
bottling companies licensed to sell the drink.
T.' E9462 D92/
)oca$)ola was created in ,11" by 3ohn 'emberton, a pharmacist in Atlanta, 4eorgia,
who sold the syrup mixed with fountain water as a potion for mental and physical
disorders.
#he ?ormula changed hands three more times before Asa 2. )andler added
carbonation and by -..D, )oca$)ola was the world:s largest manufacturer, marketer,
and distributor of <onalcoholic beverage concentrates and syrups, with more than
.. widely recogni9ed beverage brands in its portfolio. Fith the bubbles making the
difference, )oca$)ola was registered as a trademark in ,11% and by ,1=!, was being
sold in every state and territory in the Anited &tates.
In ,1==, it franchised its bottling operations in the A.&., growing quickly to reach
D%. franchisees by ,=,..5eadquartered in Atlanta with divisions and local operations
,-
in over -.. countries Forldwide, )oca$)ola generated more than %.E of its income
outside the Anited &tates by -..D.
INTERNATIONAL E?ANSION
)oke:s first international bottling plants opened in ,=." in )anada, )uba, and
'anama. By the end of the ,=-.:s )oca$)ola was bottled in twenty$seven countries
throughout the world and available in fifty$one more. In spite of this reach, volume
was low, quality inconsistent, and effective advertising a challenge with language,
culture, and government regulation all serving as barriers. ?ormer )*+ 7obert
Foodruff:s insistence that )oca$)ola wouldn:t Gsuffer the stigma of being an
intrusive American product,H and instead would use local bottles, caps, machinery,
trucks, and personnel contributed to )oke:s challenges as well with a lack of
standard processes and training degrading quality. )oca$)ola continued working for
over 1. years on Foodruff:s goal; to make )oke available wherever and whenever
consumers wanted it, Gin arm:s reach of desire.H #he &econd Forld Far proved to
be the stimulus )oca$)ola needed to build effective capabilities around the world
and achieve dominant global market share. Foodruff:s patriotic commitment Gthat
every man in uniform gets a bottle of )oca$)ola for five cents, wherever he is and at
whatever cost to our companyH
As a result of )oke:s status as a military supplier, )oca$)ola was exempt from sugar
rationing and also received government subsidies to build bottling plants around the
world to serve FFII troops.
#he ,==.:s brought a slowdown in sales growth for the )arbonated &oft 2rink
/)&20
,D
Industry in the Anited &tates, achieving only ..-E growth by -... /just under ,.
billion cases0 in contrast to the !$%E annual growth experienced during the ,=1.:s.
Fhile per capita consumption throughout the world was a fraction of the Anited
&tates:, major beverage companies clearly had to look elsewhere for the growth their
shareholders demanded. #he looming opportunity for twenty$first century was in the
world:s developing markets with their rapidly growing middle class populations.
T.' $,4615/ !,/) ,@'4-06 B4931
Interbrand:s 4lobal Brand &corecard for -..D ranked )oca$)ola the I, Brand in the
Forld and estimated its brand value at C%..! billion. #he ranking:s methodology
determined a brand:s valuation on the basis of how much it was likely to earn in the
future, distilling the percentage of revenues that could be credited to the brand, and
assessing the brand:s strength to determine the risk of future earnings forecasts.
)onsiderations included market leadership, stability, and global reach, incorporating
its ability to cross both geographical and cultural borders.
CORORATE SOCIAL RESONSIBILITY
As one of the largest and most global companies in the world, )oca$)ola took
seriously its ability and responsibility to positively affect the communities in which it
operated. #he company:s mission statement, called the )oca$)ola 'romise, stated;
G#he )oca$)ola )ompany exists to benefit and refresh everyone who is touched by
our business.H #he )ompany has made efforts towards good citi9enship in the areas
of community, by improving the quality of life in the communities in which they
operate, and the environment, by addressing water, climate change and waste
,
management initiatives. #heir activities also included the )oca$)ola Africa
?oundation created to combat the spread of 5IJKAI2& #hrough partnership with
governments, A<AI2&, and other <4+s, and the )oca$)ola ?oundation, focused
on higher education as a vehicle to build strong communities and *nhance individual
opportunity )oca$)ola:s footprint in India was significant as well. #he )ompany
employed %... )iti9ens and believed that for every direct job, D.$. more were
created in the supply chain. 8ike its parent, )oke India:s )orporate &ocial
7esponsibility /)&70 initiatives were both )ommunity and environment$focused.
'riorities included education, where primary *ducation projects had been set up to
benefit children in slums and villagesL water )onservation, where the )ompany
supported community$based rainwater harvesting projects #o restore water levels and
promote conservation education, and health, where )oke India 'artnered with <4+s
and governments to provide medical access to poor people through 7egular health
camps. In addition to outreach efforts, the company committed itself to
*nvironmental responsibility through its own business operations in India including;
*nvironmental due diligence before acquiring land or starting projects
*nvironmental impact assessment before commencing operations
4round water and environmental surveys before selecting sites
)ompliance with all regulatory environmental requirements
Ban on purchasing )?)$containing refrigeration equipment
Faste water treatment facilities with trained personnel at all company$owned
bottling operations
*nergy conservation programs
!.E water savings in last seven years of operations
,!
2espite )oke:s reputation as a socially responsible corporate citi9en, the )ompany
has faced its share of controversy worldwide surrounding both its products and its
policies in the years preceding the Indian pesticide crisis.
In the spring of ,===, current and former )oca$)ola employees, led by Information
Analyst 8inda Ingram filed bias charges against )oca$)ola in Atlanta ?ederal )ourt.
#he 8awsuit charged the )ompany with racial discrimination and stated; G#his
discrimination represents a company$wide pattern and practice, rather than a series of
isolated incidents.
Although )oca$)ola has carefully crafted African$American consumers of its
product by 'ublic announcements, strategic alliances and specific marketing
strategies, it has failed to 'lace the same importance on its African$American
employees.H
In the decades leading up to the suit, both internal and external warnings
surrounding )oke:s diversity practices were issued. In ,=1,, the 7everend 3esse
3ackson, director of the )oca$)ola India #he Fare report, written by &enior Jice
'resident )arl Fare, an African$American executive at the )ompany, cited a lack of
diversity at the decision$making level, a basic lack of workplace diversity, a
Gghettoi9ationH among blacks who worked for )ola$)ola, and an overt lack of
respect for cultural differences as well as an implicit assumption that African$
American employees lacked the intelligence to meet the challenges of the highest
executive levels.
)yrus >ehri, one of the most visible and successful plaintiff advocates in the A&,
represented the group and was skilled at leveraging the power of the media, creating
a true crisis for the )oca$)ola )ompany and exerting tremendous pressure for
settlement. In -..., the lawsuit was settled for C,=-.! million after the company had
,"
sent mixed messages and damaging statements regarding the merit of the suit for
over a year. Analysts identified the bias suit as a prime reason for the C,.. billion
decrease in )oca$)ola:s stock price between ,==1$-....
+n 3une 1, ,===, thirty$three Belgian school children became ill after drinking )oke
bottled at a local facility in Antwerp. A few days later, more Belgians complained of
similar symptoms after drinking cans of )oke that had been bottled at a plant in
2unkirk, ?rance and eighty people in northern ?rance were allegedly stricken by
intestinal problems and nausea, bringing the total afflicted to over -!..
In the days following the first outbreak, seventeen million cases of )oke from five
*uropean countries were recalled and destroyed. It was the largest product recall in
)oke:s history and Belgian and ?rench authorities banned the sale of )oca$)ola
products for ten days. 4ermany placed a temporary import ban on )oca )ola
produced in Belgium and the <etherlands, and 8uxembourg banned all )oca )ola
products. 5ealth ministers in Italy, &pain, and &wit9erland warned people about
consuming )oke products.
)oca$)ola sources explained that the contamination was due to defective carbon
dioxide used at the Antwerp plant and that a wood preservative used on shipping
pallets had concentrated the outside of cans at the 2unkirk plant. #he *uropean
)ommission, however, believed production faults and contaminated pipes were more
likely to be the cause of the problem.
<4+s reali9ed that anti$corporate campaigns could be far more powerful than anti$
government campaigns. 4lobal *xchange:s attack on <ike for sweatshop labor
conditions in the ,==.s, for example, was one of the most highly publici9ed and also
one of the most successful anti$business campaigns in recent years.
STRUCTURE OF THE CO!ANY
,%
#he )oca )ola )ompany is global player and approximately %. percent of its volume
and1. percent of its profit come from outside the Anited &tate of America. Although
it was perceived as a standardi9ed brand across the world, )oca )ola had been
quietly fine turning its international marketing strategies to suit the needs of
individual national markets. +nly the brands )oca$)ola, &prite and ?anta were
marketed globally. In 8atin American and *urope, where a heavy consumer preferred
existed for lemon lime and orange sodas. )oke had developed a wide range of
formulations and flavors to cater the needs of different countries. In Indonesia )oke
had been selling pineapple and banana flavored sodas which had been carefully
developed to suit local preferences. In 3apan, )oca$)ola had added a coffee drink
called 4eorgia and energy healthy drink named Aquarius to its product line. In India,
the )oca$)ola )ompany acquired the brands 8imca, >aa9a and #hums Ap in ,==D.
!94=')*3; :*A
>arketing mix of any organi9ation consists of 's i.e. 'roduct, price, place and
promotion having its own significance, that varies from one organi9ation to the other.
in coca M cola the information about all the 'Ns that can be available to me is given
here;
RODUCT : 'roduct mix of coca$cola consists of the various brand packs and
flavor given in the table. 'roduct strategy of the coca$cola is to promote all brands
available in the brand packs and to introduce the product in new flavor is also
introduced.
RICE :
,1
7egarding the pricing policy or the price to the distributor is not disclosed to me, but
as done for the different product of the company, company has priced the product
same as that of its major competitor or the market leader.
LACE :
#he coca$cola company in India is governed from its corporate office located at
4urgaon in 5aryana. It governs the working of five 9ones covering whole India these
9ones are Mnorth 9one , eastern 9one , western M 9one , southern 9one and Andhra
'radesh 9one . #hese 9ones are divided in to various. 'lant, which govern the area
assigned to them. #he area is the various distribution centers called distributors and
)(? agents. #hen come the retailers K customer for the company:s product,
#hey receive well from distributor and c( f agent. ?inally consumer is there, having
the product from the consumer:s shops or delivered to their home, it is more clearly
visible through this chart. #he coca$cola company, which gave its reach to the mouth
of billion of people all around the world having a wide distribution, network. In
India, the pace and &peed at which coca$cola has widened its business is really
ama9ing. 2istribution network is the biggest strength of the company.
RO!OTION :
#his part of the marketing is playing a very vital and important role in the current
situation in India. 8ooking at the competition and promotion and advertising budget
of both the companies coca$cola and 'epsi, one can easily estimate the importance of
this. #he promotion mix of coca$cola is divided in to top line promotion and below
the line promotion.
#op line promotion includes the promotion designed and done by the company:s
corporate office of 4urgaon and the office of Bombay #.J ads , design of banner ,
,=
and other p$s done by the company simultaneously all around India with no
difference in designs etc fall in this category . Below the line promotion includes the
promotion schemes, publicity material, '+& display done by the company from
9onal, plant, sale manager and area sales manager level. At the sales manager and
area sales manager level the promotion done exclusively for the cities in their
respective area and other '+& display.
STRUCTURE OF ).' OR"ANISATION
#he trademark @)oca$)ola@ was registered with the A.&. 'atent and #rademark
+ffice in ,1=D, followed by @)oke@ in ,=!. #he unique contour bottle, familiar to
consumers everywhere, was granted registration as a trademark by the A.&. 'atent
and #rademark +ffice in ,=%%L an honor awarded very few packages.
R*/' ,- ).' B,))6*3; I310/)42
Antil the ,=".s, both small town and big city dwellers enjoyed carbonated beverages
at the local soda fountain or ice cream saloon. +ften housed in the drug store, the
soda fountain counter served as a meeting place for people of all ages. +ften
combined with lunch counters, the soda fountain declined in popularity as
commercial ice cream, bottled soft drinks, and fast food restaurants became popular.
NE$ COBE7
+n April -D, ,=1!, the trade secret @<ew )oke@ formula was released. #oday,
products of the )oca )ola )ompany are consumed at the rate of more than one
billion drinks per day.
In India, )oca$)ola was the leading soft$drink till ,=%% when govt. policies
necessitated its departure. )oca$)ola made its return to the country in ,==D and made
-.
significant investments to ensure that the beverage is available to more and more
people, even in the remote and inaccessible parts of the nation.
)oca$)ola returned to India in ,==D and over the past ten years has captured the
imagination of the nation, building strong associations with cricket, the thriving
cinema industry, music etc. )oca$)olaBs advertising campaigns ." +!a!" #" .aye
and *i$e !" t" Aisi were very popular and had entered the youthBs vocabulary. In
-..-, )oca$)ola launched the campaign @T!a'da Matla/ +"ca0+"la@ which sky$
rocketed the brand to make it IndiaBs favourite soft$drink brand.
-,
'4-,4:93(' ,- ).' (,:>932
A66 I31*9 D*+*/*,3 COB5/ 94' 3,@ ISO 14001 C'4)*-*'1
All -! of the India 2ivision:s Company$Owned Bottling lants have gained
the international standard I&+ ,.., *nvironment >anagement &ystem
certificate.
#he I&+ ,.., certificate is the internationally recogni9ed standard of
environmental management.
A company must demonstrate management commitment, the total involvement
of all employees and a compliance with applicable regulatory and internal
companystandards.
THE COCA8COLA RO!ISE
#he coca$cola company exists to benefits and refreshes every one it touches. #he
basic proposition of our business is simple, solid and timeless. Fhen we bring
refreshment, value, joy and fun to our stakeholders then we successfully nurture and
protect our brand, particularly coca$cola. #hat is the key to fulfilling our ultimate
obligation to provide consistently attractive to the owner so four business.
>ore then a billion times every day, thirsty people around the world reach for coca$
cola products for refreshment. #hey deserve the highest Ouality M every time. +ur
promise to deliver that quality is the most important promise we make. and it
--
involves a world$wide , yet distinctively local , network of bottling partner ,
supplier, distributor and retailers whose success is paramount to our own. +ur
investment in local communities in over -.. countries totals billions of dollars in
jobs, facilities, marketing, the purchase of local good and services, and local
business partnership. Always and every where , we pursue continuous innovation in
the products we offer the processes we use to make them, the package we develop
and the way we bring them to market .
S,:' *3)'4'/)*3; -9() 9%,0) C,(98C,697
1. #he world:s largest spherical coca$cola sign is in <agoya, 3apan a top the dial M
<agoya building in front of the <agoya railway station. #he sign is a double
sphere constructed from more then " tone of steel, more =.meter of neon
tubing, and more then, 1%= light bulbs. #he outer shape features the coca$cola
logo and contour bottle, while the inner sphere portrays a comic scene with
twinkling planets and stars.
2. +ne of the world:s largest signs for coca$cola is located on a hill called
G*85A)5AH in &outh America, )hile. It is .. feet wide and ,D, feet high
and is made from %.,..., -" ounce bottles.
-D
3. #he first out door paint sign advertising coca$cola still exists. It was painted in
,1= in )artersville, 4eorgia.
4. )oca$cola is one of the world:s most recogni9able trademarks recogni9ed in
countries that account for =1 percent of the world:s population.
5. If all the coca$cola ever produced were in 1$ ounce bottles. And these bottles
were distributed to each person in the world. #here would be "%1 bottles or over
- gallons for each person.
6. If all the coca$cola ever produced were in 1 M ounce bottles, placed side by side
and end to end to from a lane highway, it would wrap around the earth 1- times.
7. If all the coca$cola ever produced were flowing over <iagara fall at its normal
rate of ,.! million gallons per second instead of water, the falls would flow for
about a day and a half D1 hours and " minutes.
8. #he largest representation of the world:s best known package ,.. foot tall glass
contour bottle is located at world of coca$cola 8A& J*4A&.
ADVERTISE!ENT A"ENCY
In the year ,==,, coca$cola went for more creative advertisements and split
the C -.. million ad account between >r. )AA< *7I)6&+< and )7*A#IJ*
A7#I&# A4*<)P /)AA0 presently howler. )haitra 8eo burnett handles the coke:s
account.
-
+r getting wall to look red but also about getting the brand:s massage right through
the cortex onto the mind the young India mind.
-!
I31*93 R';069),42 E3+*4,3:'3)
#he main law governing food safety in India was the ,=! 'revention of ?ood
Alteration Act /'?A0 which contained a rule regulating pesticides in foods but did
not include beverages. #he ?ood 'rocessing +rder /,=!!0 required that the main
ingredient used in soft drinks be Gpotable waterH but the Bureau of Indian &tandards
/BI&0 had no prescribed standards for pesticides in water. +ne BI& directive stated
that pesticides must be absent and set a limit of ...., parts per million but the 5ealth
&ecretary admitted, G#here are lapses in '?A regarding carbonated drinks.H
Indian law enforcement was minimal with virtually no conviction under '?A. In the
absence of national standards, <4+s such as the )&* turned to the Anited &tates and
the *uropean Anion for Ginternational norms.H #he appropriateness and feasibility of
these standards for developing nations however remained a question for many. Ander
*A food laws for example, milk, fruit, and basic staples such as rice and wheat
would need to be imported into India to satisfy safety standards.
HISTORY OF COBE IN INDIA
)oca$)ola was the leading soft drink brand in India until ,=%% when it left rather
than reveals its formula to the government and reduces its equity stake as required
under the ?oreign *xchange 7egulation Act /?*7A0 which governed the operations
of foreign companies in India. After a ,"$year absence, )oca$)ola returned to India
in ,==D, cementing its presence with a deal that gave )oca$)ola ownership of the
nationBs top soft$drink brands and bottling network. )oke:s acquisition of local
popular Indian brands including #hums Ap the most trusted brand in India. 8imca,
>aa9a, )itra and 4old &pot provided not only physical manufacturing, bottling, and
-"
distribution assets but also strong consumer preference. #his combination of local
and global brands enabled )oca$)ola to exploit the benefits of global branding and
global trends in tastes while also tapping into traditional domestic markets.
8eading Indian brands joined the )ompanyBs international family of brands,
including )oca$)ola, diet )oke, &prite and ?anta, plus the &chweppes product range.
In -..., the company launched the 6inley water brand and in -..,, &hock energy
drink and the powdered concentrate &unfill hit the market. ?rom ,==D to -..D, )oca$
)ola invested more than A&C, billion in India, making it one of the country:s top
international investors.
By -..D, )oca$)ola India had won the prestigious Foodruff )up from among --
divisions of the )ompany based on three broad parameters of volume, profitability,
and quality. )oca$)ola India achieved D=E volume growth in -..- while the
industry grew -DE nationally and the )ompany reached break$even profitability in
the region for the first time. *ncouraged by its -..- performance, )oca$)ola India
announced plans to double its capacity at an investment of C,-! million /7s. %!.
crore0 between &eptember -..- and >arch -..D. )oca$)ola India produced its
beverages with %,... local employees at its twenty$seven wholly$owned bottling
operations supplemented by seventeen franchisee$owned bottling operations and a
network of twenty$nine contract$packers to manufacture a range of products for the
company. #he complete manufacturing process had a documented quality control and
assurance program including over .. tests performed throughout the process.
#he complexity of the consumer soft drink market demanded a distribution process
to
-%
&upport %..,... retail outlets serviced by a fleet that includes ,.$ton trucks, open$
bay three wheelers, and trademarked tricycles and pushcarts that were used to
navigate the narrow alleyways of the cities.
In addition to its own employees, )oke indirectly created employment for another
,-!,... Indians through its procurement, supply, and distribution networks.
S93&*+ "0>)9C 4'/*1'3) 931 CEO ,- C,(98C,69 I31*9C &,*3'1 C,=' *3 1997 9/
V*(' 4'/*1'3)C !94=')*3; 931 @9/ *3/)40:'3)96 ), ).' (,:>9325/ /0(('// *3
1'+'6,>*3; 9 %4931 C,(98C,69 I31*9.
#he Indian consumer and in tapping India:s vast rural market potential. ?ollowing his
marketing responsibilities, 4upta served as 5ead of +perations for )ompany$owned
bottling operations and then as 2eputy 'resident. &een as the driving force behind
recent successful forays into packaged drinking water, powdered drinks, and ready$
to$serve tea and coffee, 4upta and his marketing prowess were critical to the
continued growth of the )ompany.
India:s one billion people, growing middle class, and low per capita consumption of
soft drinks made it a highly contested pri9e in the global )&2 market in the early
twenty$first century. #en percent of the country:s population lived in urban areas or
large cities and drank ten bottles of soda per year while the vast remainder lived in
rural areas, villages, and small towns where annual per capita consumption was less
than four bottles. )oke and 'epsi dominated the market and together had a
consolidated market share above =!E. Fhile soft drinks were once considered
products only for the affluent, by -..D =,E of sales were made to the lower, middle
and upper middle classes. &oft drink sales in India grew %"E between ,==1 and
-..-, from !,"%. million bottles to over ,.,... million and were expected to grow at
least ,.E per year through -.,-.
-1
In spite of this growth, annual per capita consumption was only " bottles versus ,% in
'akistan, %D in #hailand, ,%D in the 'hilippines and 1.. in the Anited &tates,. Fith
its large population and low consumption, the rural market represented a significant
opportunity for penetration and a critical battleground for market dominance. In
-..,, )oca$)ola recogni9ed that to compete with traditional refreshments including
lemon water, green coconut water, fruit juices, tea, and lassi, competitive pricing was
essential. In response, )oke launched a smaller bottle priced at almost !.E of the
traditional package.
!ARBETIN" COLA IN INDIA
#he post$liberali9ation period in India saw the comeback of cola but 'epsi had
already beaten )oca$)ola to the punch, creatively entering the market in the ,=1.:s
in advance of liberali9ation by way of a joint venture. As early as ,=1!, 'epsi tried to
gain entry into India and finally succeeded with the 'epsi ?oods 8imited 'roject in
,=11, as a 3J of 'epsi)o, 'unjab government$owned 'unjab Agro Industrial
)orporation /'AI)0, and Joltas India 8imited. 'epsi was marketed and sold as 8ehar
'epsi until ,==, when the use of foreign brands was allowed under the new
economic policy and 'epsi ultimately bought out its partners, becoming a fully$
owned subsidiary and ending the 3J relationship in ,==.Fhile the joint venture was
only marginally successful in its own right, it allowed 'epsi to gain precious early
experience with the Indian market and also served as an introduction of the 'epsi
brand to the Indian consumer such that it was well$poised to reap the benefits when
liberali9ation came. #hough )oke benefited from 'epsi creating demand and
developing the market, 'epsi:s head$start gave )oke a disadvantage in the mind of
the consumer.
-=
!94=')*3; 4,('// !,1'6
Brand Localization Strategy
T.' T@, I31*9 /)49)';27
I31*9 A7 L*-' ., ), 9*/*D
GIndia A,H the designation )oca$)ola gave to the market segment including
metropolitan areas and large towns, represented E of the country:s population.
#his segment sought social bonding as a need and responded to inspirational
messages, celebrating the benefits of their increasing social and economic freedoms.
G8ife ho to aisi,H /life as it should be0 was the successful and relevant tagline found
in )oca$)ola:s advertising to this audience.
D.
A()*+*)*'/
R'/,04('/ C,3)4,6/
!,3*),4*3; #
!'9/04':'3)/
O0)>0) I3>0)
I31*9 B7 T.9319 !9)69% C,(98C,69D
)oca$)ola India believed that the first brand to offer communication targeted to the
smaller towns would own the rural market and went after that objective with a
comprehensive strategy. GIndia BH included small towns and rural areas, comprising
the other ="E of the nation:s population. #his segment:s primary need was out$of$
home thirst$quenching and the &oft drink category was undifferentiated in the minds
of rural consumers. Additionally, with an average )oke costing 7s. ,. and an
average day:s wages around 7s. ,.., )oke was perceived as a luxury that few could
afford.
In an effort to make the price point of )oke within reach of this high$potential
market, )oca$)ola launched the Accessibility )ampaign, introducing a new -..ml
bottle, smaller than the traditional D..ml bottle found in urban markets, and
concurrently cutting the price in half, to 7s. !. #his pricing strategy closed the gap
between )oke and basic refreshments like lemonade and tea, making soft drinks truly
accessible for the first time. At the same time, )oke invested in distribution
infrastructure to effectively serve a disbursed population and doubled the number of
retail outlets in rural areas from 1.,... in -.., to ,".,... in -..D, increasing
market penetration from ,D to -!E.
)oke:s advertising and promotion strategy pulled the marketing plan together using
local language and idiomatic expressions. G#handa,H meaning coolKcold is also
generic for cold Beverages and gave GT.9319 !9)69% C,(98C,69H delicious
multiple meanings. 8iterally #ranslated to G)oke means refreshment,H the phrase
D,
directly addressed both the primary need of this segment for cold refreshment while
at the same time positioning )oke as a GT.9319H +r generic cold beverage just likes
tea, lassi, or lemonade. As a result of the #handa )ampaign, )oca$)ola won
Advertiser of the Pear and )ampaign of the Pear in -..D.
RURAL SUCCESS
)omprising %E of the countryBs population, ,E of its middle class, and !1E of its
2isposable income, the rural market was an attractive target and it delivered results.
)oke *xperienced D%E growth in -..D in this segment versus the -E growth seen
in urban areas. 2riven by the launch of the new 7s. ! product, per capita
consumption doubled between -..,$-..D. #his market accounted for 1.E of India:s
new )oke drinkers, D.E of -..- volume, and was expected to account for !.E of
the company:s sales in -..D.
)oca$)ola in India has setup an independent organi9ations which is 5.).) ( B.).)
with a capital of D!. A.&. C each by virtue of sellout decision of the passed managing
director &h. &. ). Aggarwal. 5industan )oca$)ola bottling /<$F0 'vt. 8td.
<ajibabad took the complete possession of this plant, land, machinery, (
intellectuals on ?ebruary ,: ,==1 and since then 5.).), looking after all its affairs
under company owned bottling plant to establish integrated marketing system in the
area.
In ,=== the company opened up the new bottling plant at 2A&<A in 4ha9iabad
2istt. #his plant has more sophisticated equipments, then the plant at <ajibabad.
D-
SOFT DRINB !ARBET8 INDIAN
SCENARIO
India soft drink industry is witnessing a boom time. Its growth rate is around -.E
with which such growth rate, volume could reach billion crates with in ,. years.
#hree major multinational companies are fighting to grab a major chunk of business
from Indian markets. #hese three coca$cola, 'epsi, )adbury. All of these companies
have seen an enormous potential in this country. )onsequently, by world standard,
Indian per capita consumption of soft drinks is still very low.
#here fore these soft drinks grants feel that fire capita consumption can only
grow up. &oft drink industries has already seen and estimated sale of around -.
million crates higher then last year:s sale of -. million in ,==1. #he >ain reason
for such a high growth rate heightened competition between coca$cola and 'epsi,
)adbury, bring a new entrant is for behind.
India is actually more vivid in taste and preference then any other country
market. 2elhi jar instance, account for about -.E of total soft consumption in term
of sales.
#here are about , 1.,... soft drinks retailers in India and their numbers are
increasing day to day. #his actually means that there is just one soft drink retailer on
a population of D%,".., which is far below the international standard. Fhere as
DD
'hilippines has one soft drink retail counter over a population of ,!. people i.e. ,
..,... outlets on a population of ". million.
D
BRAND CO!ETITION
#here are number of brands of soft drink in the market of various companies.
Jarious brand competitors of )+)A$)+8A ( '*'&I are as under in the following
table$
SI. N,. B4931 ,- COCA8COLA B4931 ,- ESI
1. )oca )ola 'epsi
2. #hums Ap 'epsi
3. &prite >ountain 2ew
% up
4. 8imca <imboo9
5. ?anta >irinda
6. >aa9a &lice
7. 6inley /water0 Aquafina /water0
REASONS OF BRAND REFERENCE
#here are number of reasons on the basis of which our customers: select various
brand of there taste. &ome of the major factors are as following;
#aste
D!
Brand
Advertisement
'rice
Availability
)oldness
#he following data on the basis of past survey reveals that
!.E customers drink for taste.
".E customers are loyal customersL they feel pleasure to use a particular
brand.
,-E customers are compromising customerL they compromise with the
availability of products.
1E drink for getting relief from heat.
LOYAL BRAND CUSTO!ERS +/. VARIETY BRAND
CUSTO!ERS
+n routine survey result found, was that there are two types of soft drink
customers in the market for any type of company.
#here are ".E consumers who consume only one brand ( are loyal to that very
brand. It may be either )oke, 'epsi or a local brand.
D"
.E consumers are variety branded customers. #hey drink various brands on
various bases.
BRAND IN INDIAN !ARBET
D%
4,%6':/ ,- ).' (,:>932
Indian soft drink industry is witnessing a boom time. Its growth rate is around
-.E with which such growth rate, volume could reach billion crates with in ,. years.
#hree major multinational companies are fighting to grab a major chunk of business
from Indian markets. #hese three are coca$cola, 'epsi and )adbury. All of these
D1
companies have seen an enormous potential in this country. )onsequently, by world
standard, Indian per capita consumption of soft drinks is still very low.
#here fore these soft drinks grants feel that fire capita consumption can only
grow up. &oft drink industries has already seen and estimated sale of around -.
million crates higher then last year:s sale of -. million in ,==1. #he >ain reason
for such a high growth rate heightened competition between coca$cola and 'epsi,
)adbury, bring a new entrant is for behind.
India is actually more vivid in taste and preference then any other country
market. 2elhi for instance, account for about -.E of total soft consumption in term
of sales.
T.'4' 94' 9%,0) 4C 80C000 /,-) 14*3=/ 4')9*6'4/ *3 I31*9 931 ).'*4
30:%'4/ 94' *3(4'9/*3; 192 ), 192. T.*/ 9()09662 :'93/ ).9) ).'4' */ &0/) ,3'
/,-) 14*3= 4')9*6'4 ,3 9 >,>069)*,3 ,- 37C600C @.*(. */ -94 %'6,@ ).' *3)'439)*,396
/)931941. $.'4' 9/ .*6*>>*3'/ .9/ ,3' /,-) 14*3= 4')9*6 (,03)'4 ,+'4 9
>,>069)*,3 ,- 150 >',>6' *.'. 4C 00C000 ,0)6')/ ,3 9 >,>069)*,3 ,- 60 :*66*,3.
R'/,60)*,3 ,- ).' (,:>9327
Fe will conduct ourselves and business activates with the highest standard of
honestly integrity, and professionalism.
Fe will recogni9e the positive contributions that we make individual and
team member to produce our business success.
Fe will recogni9e the positives contribution that we makes individual and
term member to produce our business success.
Fe will encourage a learning environment where the people can constantly
grow developed and contribute.
D=
Fe will strive for excellence and seek continue improvement in everything
we do.
Fe will respect the entire stake holder, including employees and suppliers
and instill them with a person to deliver the highest employees and suppliers
and instill them with a passion to deliver the highest quality good and
services.
#he )oca$)ola )ompany exists to benefit and refresh everyone it touches.
?or us, Ouality is more than just something we taste or see or measure. It shows in
our every action. Fe relentlessly strive to exceed the worldBs ever$changing
expectations because keeping our Ouality promise in the marketplace is our highest
business objective and our enduring obligation. >ore than a billion times every day,
consumers choose our brand of refreshment because )oca$)ola is;
#he &ymbol of Ouality
)ustomer and )onsumer &atisfaction
A 7esponsible )iti9en of the Forld
.
STRATE"Y ADOTED BY COCA8COLA TO
INCREASE
THE NU!BER OF CONSU!ERS
#he D ABs is the underlying strategy for meeting company goals to increase no. of
consumers. #he D ABs are; $
A+9*69%*6*)27
#o increase the availability of )oca$)ola products in an improved or innovative new
'ackaging, dispensing systems, distribution systems, marketing programs and
training and development programs.
A--,419%*6*)27
#he consumer can afford the )oca$)ola products at a very reasonable price.
A(('>)9%*6*)27
>aking )oca$)ola brand as the beverage choice for any occasion depends on the
likings, taste and preferences of the target audience. Acceptability can also be
increased through advertising, sponsorships, promotionsL youth market activities,
community programs and other activities.
YOUR HEALTH AND OUR BEVERA"ES
#here is growing confusion about what constitutes a health diet. Fith so mush
conflicting information available about health and nutrition, it can be very difficult to
determine what is accurate and what is not.
#he truth is that soft drink and beverages have a place in a healthy lifestyle. A
healthy diet incorporates the basic principles of variety, balance and moderation
without sacrificing enjoyment.
,
HEALTH AND OUR BEVERA"ES 888 THE FACTS
&oft drinks do not contribute to diabetes.
#he caffeine and phosphoric acid in soft drinks does not affect bone health
#he sugar in soft drinks does not cause children to be hyperactive.
#he consumption of soft drinks has not affected calcium consumption.
&ugar consumption has not been shown to cause obesity.
#he amount of sugar and calories in soft drinks is about the same as many
fruit juices
COCA8COLA INDIA8OUR VISION
'rovide exceptional strategic leadership on the )oca$)ola India system,
resulting in customer preference and loyalty, through )oca$)ola:s commitment to
them and in a highly profitable )oca$)ola corporate branded beverages system.
THE COCA8COLA8!ISSION
GT#E )EST G*O)A* +OM-ANYH
#he mission of )oca$)ola )o. is to increase shareowner value over time. #he
)o. accomplishes the mission by working with its business partners to deliver
satisfaction and values to its customers, through world wide system of superior
brands and services, thus increasing brand equity on a global basis, create consumer
products, services and communications, customer service and bottling strategies,
process and tools in order to create competitive advantage and deliver superior value.
-
THE COCA8COLA BUSINESS IN
INDIA
Fhile the )oca$)ola )ompany is a global company with some of the world:s most
widely recogni9ed brand, the )oca )ola business in India, as in each country where it
operate, is a local business. Beverages are produced locally employing Indian
citi9ensL )oke product range ( marketing reflect Indian tastes ( lifestyles. #hey are
deeply involved in the life of the local communities in which they operate that is
procurement, supply ( distribution system.
BOTTLIN" OERATIONS
#he )oca$)ola )ompany in India comprises -% wholly owned company bottling
plants ( another ,% franchisee owned bottling operation plants. A network of -=
contract$packers also manufactures a range of products for the company.
Almost all the goods ( services required to produce ( market )oca$ )ola in India
are made locally, sometime with the help of technology ( skill from the company.
#he complexity of the Indian market is reflected in the distribution fleet, which
includes ,.$ tone trucks, open$bay three$wheelers that can navigate the narrow
alleyways of Indian cities, and trademarked tricycle ( pushcarts.
RODUCTS # SERVICES
COCA8COLA is the most popular ( biggest selling soft drinks in history, as well
as best known product in the world. )reated in Atlanta, )+)A$)+8A was first
offered as a fountain beverage by mixing )oca$)ola syrup with carbonated water.
)+)A$)+8A was registered as a trademark in ,11% ( by ,1=! )oca$)ola was
being sold in every state ( territory in the Anited &tates.
D
#oday, you can find )+)A$)+8A in virtually every part of the world. #he )oca$
)ola )ompany has nearly .. beverages in its portfolio.
THU!S U
T.0:/ U> is a leading carbonated soft drink and most trusted brand in India.
+riginally introduced in ,=%%, #hums Ap was acquired by #he )oca$)ola )ompany
In,==D.
#hums Ap is known for its strong, fi99y taste and its confident, mature and uniquely
masculine attitude. #his brand clearly seeks to separate the men from the boys.