CHAPTER 1- INTRODUCTION

1
1.1 COMPANY PROFILE & HISTORY

2
The Coca-Cola Company
1886-92
Atlanta Beginnings

It was 1886, and in New York Harbor, workers were constructing the Statue of
Liberty. Eight hundred miles away, another great American symbol was about to be
unveiled.

Like many people who change history, John Pemberton, an Atlanta pharmacist, was
inspired by simple curiosity. One afternoon, he stirred up a fragrant, caramel-colored
liquid and, when it was done, he carried it a few doors down to Jacobs' Pharmacy.
Here, the mixture was combined with carbonated water and sampled by customers
who all agreed -- this new drink was something special. So Jacobs' Pharmacy put it on
sale for five cents a glass.

Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola®, and wrote
it out in his distinct script. To this day, Coca-Cola is written the same way. In the first
year, Pemberton sold just 9 glasses of Coca-Cola a day.

A century later, The Coca-Cola Company has produced more than 10 billion gallons
of syrup. Unfortunately for Pemberton, he died in 1888 without realizing the success
of the beverage he had created.

Over the course of three years, 1888-1891, Atlanta businessman Asa Griggs Candler
secured rights to the business for a total of about $2,300. Candler would become the
Company's first president, and the first to bring real vision to the business and the
brand.

3
1893-1904
Beyond Atlanta

Asa G. Candler, a natural born salesman, transformed Coca-Cola from an invention

into a business. He knew there were thirsty people out there, and Candler found
brilliant and innovative ways to introduce them to this exciting new refreshment. He
gave away coupons for complimentary first tastes of Coca-Cola, and outfitted
distributing pharmacists with clocks, urns, calendars and apothecary scales bearing
the Coca-Cola brand. People saw Coca-Cola everywhere, and the aggressive
promotion worked. By 1895, Candler had built syrup plants in Chicago, Dallas and
Los Angeles.

Inevitably, the soda's popularity led to a demand for it to be enjoyed in new ways. In
1894, a Mississippi businessman named Joseph Biedenharn became the first to put
Coca-Cola in bottles. He sent 12 of them to Candler, who responded without
enthusiasm. Despite being a brilliant and innovative businessman, he didn't realize
then that the future of Coca-Cola would be with portable, bottled beverages customers
could take anywhere. He still didn't realize it five years later, when, in 1899, two
Chattanooga lawyers, Benjamin F. Thomas and Joseph B. Whitehead, secured
exclusive rights from Candler to bottle and sell the beverage -- for the sum of only
one dollar.

1905-18
Safeguarding the brand

Imitation may be the sincerest form of flattery, but The Coca-Cola Company was
none too pleased about the proliferation of copycat beverages taking advantage of its
success. This was a great product, and a great brand. Both needed to be protected.
Advertising focused on the authenticity of Coca-Cola, urging consumers to "Demand
the genuine" and "Accept no substitute."

4
The Company also decided to create a distinctive bottle shape to assure people they
were actually getting a real Coca-Cola. The Root Glass Company of Terre Haute,
Indiana, won a contest to design a bottle that could be recognized in the dark. In 1916,
they began manufacturing the famous contour bottle. The contour bottle, which
remains the signature shape of Coca-Cola today, was chosen for its attractive
appearance, original design and the fact that, even in the dark, you could identify the
genuine article.

As the country roared into the new century, the Coca-Cola Company grew rapidly,
moving into Canada, Panama, Cuba, Puerto Rico, France, and other countries and
U.S. territories. In 1900, there were two bottlers of Coca-Cola; by 1920, there would
be about 1,000.

1919-1940
The Woodruff Legacy

Perhaps no person had more impact on The Coca-Cola Company than Robert
Woodruff. In 1923, four years after his father Ernest purchased the Company from
Asa Candler, Woodruff became the Company president. While Candler had
introduced the U.S. to Coca-Cola, Woodruff would spend more than 60 years as
Company leader introducing the beverage to the world beyond.

Woodruff was a marketing genius who saw opportunities for expansion everywhere.
He led the expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the
Olympic Games for the first time when Coca-Cola traveled with the U.S. team to the
1928 Amsterdam Olympics. Woodruff pushed development and distribution of the
six-pack, the open top cooler, and many other innovations that made it easier for
people to drink Coca-Cola at home or away. This new thinking made Coca-Cola not
just a huge success, but a big part of people's lives.

5
1941-59
The war & its legacy

In 1941, America entered World War II. Thousands of men and women were sent
overseas. The country, and Coca-Cola, rallied behind them. Woodruff ordered that
"every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and
whatever it costs the Company." In 1943, General Dwight D. Eisenhower sent an
urgent cablegram to Coca-Cola, requesting shipment of materials for 10 bottling
plants. During the war, many people enjoyed their first taste of the beverage, and
when peace finally came, the foundations were laid for Coca-Cola to do business
overseas.

Woodruff’s vision that Coca-Cola be placed within "arm's reach of desire," was
coming true -- from the mid-1940s until 1960, the number of countries with bottling
operations nearly doubled. Post-war America was alive with optimism and prosperity.
Coca-Cola was part of a fun, carefree American lifestyle, and the imagery of its
advertising -- happy couples at the drive-in, carefree moms driving big yellow
convertibles -- reflected the spirit of the times.

1960-81
A world of customers

After 70 years of success with one brand, Coca-Cola®, the Company decided to
expand with new flavors: Fanta®, originally developed in the 1940s and introduced in
the 1950s; Sprite® followed in 1961, with TAB® in 1963 and Fresca® in 1966. In
1960, The Coca-Cola Company acquired The Minute Maid Company, adding an
entirely new line of business -- juices -- to the Company.

6
The Company's presence worldwide was growing rapidly, and year after year, Coca-
Cola found a home in more and more places: Cambodia, Montserrat, Paraguay,
Macau, Turkey and more.

Advertising for Coca-Cola, always an important and exciting part of its business,
really came into its own in the 1970s, and reflected a brand connected with fun,
friends and good times. The international appeal of Coca-Cola was embodied by a
1971 commercial, where a group of young people from all over the world gathered on
a hilltop in Italy to sing "I'd Like to Buy the World a Coke."

In 1978, The Coca-Cola Company was selected as the only Company allowed to sell
packaged cold drinks in the People's Republic of China.

1982-89
Diet coke and new coke

The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of
much change and innovation at The Coca-Cola Company. In 1981, Roberto C.
Goizueta became chairman of The Board of Directors and CEO of The Coca-Cola
Company. Goizueta, who fled Castro's Cuba in 1961, completely overhauled the
Company with a strategy he called "intelligent risk taking."

Among his bold moves was organizing the numerous U.S. bottling operations into a
new public company, Coca-Cola Enterprises Inc. He also led the introduction of diet
Coke®, the very first extension of the Coca-Cola trademark; within two years, it had
become the top low-calorie drink in the world, second in success only to Coca-Cola.

7
One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-
Cola, the first change in formulation in 99 years. In taste tests, people loved the new
formula, commonly called “new Coke.” In the real world, they had a deep emotional
attachment to the original, and they begged and pleaded to get it back. Critics called it
the biggest marketing blunder ever. But the Company listened, and the original
formula was returned to the market as Coca-Cola classic®, and the product began to
increase its lead over the competition -- a lead that continues to this day.

1990-99
New markets and brand

The 1990s were a time of continued growth for The Coca-Cola Company. The
Company's long association with sports was strengthened during this decade, with
ongoing support of the Olympic Games, FIFA World Cup™ football (soccer), Rugby
World Cup and the National Basketball Association. Coca-Cola classic became the
Official Soft Drink of NASCAR racing, connecting the brand with one of the world's
fastest growing and most popular spectator sports.

And 1993 saw the introduction of the popular "Always Coca-Cola" advertising
campaign, and the world met the lovable Coca-Cola Polar Bear for the first time. New
markets opened up as Coca-Cola products were sold in East Germany in 1990 and
returned to India in 1993.

New beverages joined the Company's line-up, including PowerAde® sports drink,
Qoo® children's fruit drink and Dasani® bottled water. The Company's family of
brands further expanded through acquisitions, including Limca®, Maaza® and Thums
Up® in India, Barq's® root beer in the U.S., Inca Kola® in Peru, and Cadbury
Schweppes'® beverage brands in more than 120 countries around the world. By 1997,
the Company already sold 1 billion servings of its products every day, yet knew that
opportunity for growth was still around every corner.

8
2000 and now
Coca cola now

In 1886, Coca-Cola® brought refreshment to patrons of a small Atlanta pharmacy.

Now well into its second century, the Company's goal is to provide magic every time
someone drinks one of its more than 400 brands. Coca-Cola has fans from Boston to
Budapest to Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In
the remotest comers of the globe, you can still find Coca-Cola.

Coca-Cola is committed to local markets, paying attention to what people from

different cultures and backgrounds like to drink, and where and how they want to
drink it. With its bottling partners, the Company reaches out to the local communities
it serves, believing that Coca-Cola exists to benefit and refresh everyone it touches.

From the early beginnings when just nine drinks a day were served, Coca-Cola has
grown to the world’s most ubiquitous brand, with more than 1.4 billion beverage
servings sold each day. When people choose to reach for one of The Coca-Cola
Company brands, the Company wants that choice to be exciting and satisfying, every
single time.

9
1.2 VISION & MISSION

The world is changing all around us. To continue to thrive as a business over the next
ten years and beyond, we must look ahead, understand the trends and forces that will
shape our business in the future and move swiftly to prepare for what's to come. We
must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates
a long-term destination for our business and provides us with a "Roadmap" for
winning together with our bottler partners.

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.

10
  Profit: Maximize long-term return to shareowners while being mindful of
our overall responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.

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

Focus on the Market

 Focus on needs of our consumers, customers and franchise partners

 Get out into the market and listen, observe and learn
 Possess a world view
 Focus on execution in the marketplace every day
 Be insatiably curious

Work Smart

 Act with urgency

 Remain responsive to change
 Have the courage to change course when needed
 Remain constructively discontent
 Work efficiently

11
Act like Owners

 Be accountable for our actions and inactions

 Steward system assets and focus on building value
 Reward our people for taking risks and finding better ways to solve
problems
 Learn from our outcomes -- what worked and what didn’t

Be the Brand
 Inspire creativity, passion, optimism and fun

12
1.3 BOARD OF DIRECTORS
The board is elected by the shareholders to oversee their interest in the long-term
health and the overall success of the business and its financial strength.

Muhtar Kent
Chairman of the Board and Chief Executive Officer
The Coca-Cola Company

Herbert A. Allen
President and Chief Executive Officer
Allen & Company Incorporated (a privately held investment firm)

13
Ronald W. Allen
Advisory Director, former Chairman of the Board, President, and Chief Executive
Officer
Delta Air Lines, Inc.

Cathleen P. Black
President
Hearst Magazines

Barry Diller
Chairman of the Board and Chief Executive Officer
IAC/InterActiveCorp
Chairman of the Board and Senior Executive
Expedia, Inc.

14
Alexis M. Herman
Chair and Chief Executive Officer
New Ventures, LLC

Donald R. Keough
Non-Executive Chairman of the Board
Allen & Company Incorporated and
Allen & Company, LLC

Maria Elena Lagomasino

Chief Executive Officer
GenSpring Family Offices, LLC

Donald F. McHenry

15
Distinguished Professor in the Practice of Diplomacy and International Affairs
School of Foreign Service, Georgetown University

Sam Nunn
Co-Chairman and Chief Executive Officer
Nuclear Threat Initiative (NTI)

James D. Robinson III

General Partner
RRE Ventures
President
JD Robinson, Inc.

Peter V. Ueberroth

16
Investor and Chairman
Contrarian Group, Inc.
Nonexecutive Co-Chairman
Pebble Beach Company

Jacob Wallenberg
Chairman of the Board
Investor AB

James B. Williams
Former Chairman of the Board and Chief Executive Officer
SunTrust Banks, Inc.

17
 CHAPTER 2- PRODUCTS

Product List
With a portfolio of more than 3,300 beverages, from diet and regular sparkling
beverages to still beverages such as 100 percent fruit juices and fruit drinks, waters,
sports and energy drinks, teas and coffees, and milk-and soy-based beverages, our
variety spans the globe.

 Energy Drinks
 Juices / Juice Drinks

18
 Soft Drinks
 Sports Drinks
 Tea and Coffee
 Water

For those with a high-intensity approach to life, our brands of Energy Drinks contain
ingredients such as ginseng extract, guarana extract, caffeine and B vitamins.

19
We bring innovation to the goodness of juice in our more than 20 juice and juice drink
brands, offering both adults and children nutritious, refreshing and flavorful
beverages.

Our dozens of soft drink brands provide flavor and refreshment in a variety of
choices. From the original Coca-Cola to most recent introductions, soft drinks from
The Coca-Cola Company are both icons and innovators in the beverage industry.

20
These Sports Drinks contains carbohydrates, fluids, and electrolytes, providing rapid
hydration and terrific taste for fitness-seekers at any level.

Bottled and canned teas and coffees provide consumers' favorite drinks in convenient
take-anywhere packaging, satisfying both traditional tea drinkers and today's growing
coffee culture.

21
Smooth and essential, our Waters and Water Beverages offer hydration in its purest
form.

2.1 Brand ambassadors

22
Brand ambassadors for India operation are as follows:

Akshay Kumar for Thums up

Genelia D’souza for Fanta

Sonali Bendre for Limca

23
Shahrukh Khan for Sprite

Gautam Gambhir for Coca-Cola

24
Latest Brand Ambassadors of Coca-Cola

25
Imran Khan for Coca cola

Kalki Koechlin for Coca-Cola

2.2 MARKET SHARE

26
Being the biggest company in the soft drink industry, Coca Cola enjoys the largest
market Share. This company controls about 59% of the world market.
Because carbonated soft drinks are the largest growth segment within the
nonalcoholic ready-to-drink beverage category measured by volume, that is why they
are focusing more on this and they are continually increasing the pace because they
know that accelerating this pace is crucial to their future success. Thus they are
increasing their market day by day. This strategy has worked a lot and it has helped
them to become the World’s leading Soft Drink Company. The global unit sale of the
Coca Cola Company is increasing from the last ten years.

2.3 MARKETING STRATEGY

27
Our local marketing strategy enables Coke to listen to all the voices around the world
asking for beverages that span the entire spectrum of tastes and occasions. What
people want in a beverage is a reflection of who they are, where they live, how they
work and play, and how they relax and recharge. Whether you're a student in the
United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a
child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a
run together, we're there for you. We are determined not only to make great drinks,
but also to contribute to communities around the world through our commitments to
education, health, wellness, and diversity. Coke strives to be a good neighbor,
consistently shaping our business decisions to improve the quality of life in the
communities in which we do business. It's a special thing to have billions of friends
around the world, and we never forget it.

PRODUCT RANGE

The total range of Coca Cola Company includes:

 Energy Drinks
 Juices / Juice Drinks
 Soft Drinks
 Sports Drinks
 Tea and Coffee
 Water

And company offers their products in different bottle sizes these include:
 SSRB (standers size returnable bottle)
 LRB (litter returnable bottle)
 NRB (no return bottle) or disposable bottle
 PET 1.5 (1.5 litter plastic bottle)
 CANS (tin pack 330 ml)

28
PACKING
Coca cola products are available in different packing
 24 regular bottle shell
 6 bottle pack for 1.5 pets
 12 bottles in a pack for disposable bottle
 24 cans in one pack.

PRICE STRATEGY

 Trade Promotion
Coca Cola Company gives incentives to middle men or retailers in way a that they
offer them free samples and free empty bottles, by this these retailers and middle man
push their product in the market. And that’s why coca cola seen more in the market.
And they have a good sale in the market because according to the expert which
product seen more in the market that sells more- “Seen as sold”. They do agreements
with a shop keepers and stores to exclusive sale in that store. These stores are called
as KEY accounts in their local language. And coke also invest heavy budget on these
stores and offers them free samples and free bottles and some time cash incentives.

 Different Price In Different Seasons

Some times Coca Cola Company changes their product prices according to the
season. Summer is supposed to be a good season for beverage industry in India. So in
winter they reduce their prices to maintain their sales and profit. But normally they
reduce the prices of their pet bottles or 1 litter glass bottle.

29
PROMOTION STRATEGIES

 Getting shelves
They gets or purchase shelves in big departmental stores and display their products in
that shelves in that style which show their product more clear and more attractive for
the consumers.

 Eye Catching Position

Salesman of the coca cola company positions their freezers and their products in eye-
catching positions. Normally they keep their freezers near the entrance of the stores.

 Sale Promotion
Company also do sponsorships with different college and school’s cafes and sponsors
their sports events and other extra curriculum activities for getting market share.

 UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme and they
offer very handy prizes in it. Like once they offer bicycles, caps, TV sets, cash prizes
etc. This scheme is very much popular among children.

 DISTRIBUTION CHANNELS
Coca Cola Company makes two types of selling
Direct selling
Indirect selling

1. Direct Selling

30
In direct selling they supply their products in shops by using their own transports.
They have almost 450 vehicles to supply their bottles. In this type of selling company
have more profit margin.

2. Indirect Selling
They have their whole sellers and agencies to cover all area. Because it is very
difficult for them to cover all area of Pakistan by their own so they have so many
whole sellers and agencies to assure their customers for availability of coca cola
products.

31
CHAPTER 3- COMPETITORS

32
Coca-Cola competes in the non-alcoholic beverages segment of the commercial
beverages industry. The company faces intense competition in the various markets
from regional as well as global players. Also, the company faces competition from
various non-alcoholic sparkling beverages included juices and nectars and fruit
drinks. In many of the countries in which Coca-Cola operates, included the US,
PepsiCo is one of the company’s primary competitors. Other significant competitors
include Nestle, Cadbury Schweppes, Groupe DANONE and Kraft Foods. 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.

Its competitors are:

 PepsiCo

33
 Nestle

34
 Cadbury Schweppes

 Group DANONE

 Kraft foods

35
36
 CHAPTER 4- SWOT ANALYSIS

The Coca-Cola Company is a leading manufacturer, distributor and marketer of non-

alcoholic beverage concentrates and syrups, in the world. Coca-Cola has a strong
brand name and brand portfolio. Business Week and Interbrand, a branding
consultancy, recognize Coca-Cola as one of the leading brands in their top 100 global
brands ranking in 2006. Coca-Cola ranks well ahead of its close competitor Pepsi.
The company’s strong brand value facilitates customer recall and allows Coca-Cola to
penetrate markets. However company is threatened by intense competition which
could have an adverse impact on the company’s market share.

STRENGTHS WEAKNESSES

 World’s leading brand  Negative publicity

 Sluggish performance in

37
  Large scale operations North America

 Robust revenue growth in three  Decline in cash from operating

segments activities

OPPORTUNITIES THREATS

 Acquisitions intense  Intense competition

competition
 Dependence on bottling
 Growing bottled water partners
markets
 Sluggish growth of carbonated
 Growing Hispanic population
beverages
in US

STRENGTHS

 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. Business Week and Interbrand, a
branding consultancy, recognizes Coca-Cola as one of the leading brands in their top
100 global brands ranking in 2006. The Business Week-interbred valued Coca- cola at
$67,000 million in 2006. 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 products 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,

38
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.

 Large scale of operations

With revenues in excess of $24 billion Coca-Cola has a large scale of operation. The
Coca-Cola Company is a leading manufacturer, distributor and marketer of non-
alcoholic beverage concentrates and syrups, in the world. Coca-Cola is selling
trademarked beverage products since year 1886 in the US. The company currently
sells its products in more than 200 countries. Of the approximately 52 billion
beverage servings of all types consumed worldwide everyday, beverages bearing
trademarks owned by or licensed to Coca-Cola account for more than 1.4 billion.

The company’s operations are supported by a strong infrastructure across the globe.
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
facility as well as facility that manufacture juice concentrates. The company’s large
scale of operations allows it to feed upcoming markets with relative ease and
enhances its revenue generation capacity.

 Robust revenue growth in three segments

Coca-Cola’s revenue 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

39
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’ and bottling investments, accounted for 34.8% of total revenues during fiscal
2006. Robust revenue growth rates in these segments contributed to top-line growth
for Coca-Cola during 2006.

WEAKNESSSES

 Negative publicity

The company received negative publicity in India in September 2006. The company
was accused by the Centre for Science and Environment (CSE) of selling products
containing a hazardous pesticide residue. These pesticides include chemicals which
could cause cancers, damage the nervous and reproductive systems and reduce bone
mineral density. Such negative publicity could adversely impact the company’s brand
image and demand for Coca-Cola products. This could also have an adverse impact
on company’s growth prospects in the international markets.

 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.

In 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
trend in second half of 2006 and decline in warehouse-delivered water and juice

40
businesses. Moreover, 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 flow 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.

OPPORTUNITIES

 Acquisitions

41
For the last one year, Coca-Cola has been aggressively adopting the inorganic growth
path. 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. In Germany the company
acquired Apollinaris which sells sparkling and still mineral water in Germany. Coca-
Cola has also acquired a 100% interest in TJC Holdings, a bottled company in South
Africa. Coca-Cola also made acquisitions on Australia and New Zealand during 2006.
These acquisitions strengthened Coca-Cola’s international operations. These also give
Coca-Cola an opportunity for growth, through new product launch or greater
penetration of existing markets.

Stronger international operations increase the company’s capacity to penetrate

international markets and also give it an opportunity to diversify its revenue stream.

 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 liters 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. In terms of value, the bottled water market is forecast to
reach $19.3 billion by the end of 2010. In the bottled water market, the revenue of
flavored water (water-based, slightly sweetened refreshment drink) segment is
growing by about $10 billion annually. The company’s Dasani brand water is the third
best selling bottled water in the US.

42
Coca-Cola could leverage its strong position in the bottled water segment to take
advantage of growing demand for flavored water.

 Growing Hispanic population in US

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. The US census estimates that by 2020, the Hispanic
population will reach 60 million or almost 18% of total US population. The economic
influence of Hispanic is growing even faster than their population. Nielsen Media
Research estimates that the buying power of Hispanics will exceed $1 trillion by
2008- a 55% increase over 2003 levels. Coca-Cola has an extensive operations and an
extensive product portfolio in the US.

THREATS

 Intense competition

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

beverages industry. The company faces intense competition in the various markets
from regional as well as global players. Also, the company faces competition from
various non-alcoholic sparkling beverages included juices and nectars and fruit
drinks. In many of the countries in which Coca-Cola operates, included the US,
PepsiCo is one of the company’s primary competitors. Other significant competitors
include Nestle, Cadbury Schweppes, Group DANONE and Kraft Foods. 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.

43
  Dependence on bottling partners

Coca-Cola generates most of its revenue 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.

If Coca-Cola is unable to provide an appropriate mix of incentives to its bottling

partners, then the partners may take actions that, while maximizing their own short-
term profits, may be detrimental to Coca-Cola. These bottlers may devote more
resources to business opportunities or products other than those beneficial for Coca-
Cola. Such actions could, in the long run, have an adverse effect on Coca-Cola’s
profitability. In addition, loss of one or more of its major customers by any one of its
major bottling partners could indirectly affect Coca-Cola’s business results. Such
dependence on third parties is a weak link in Coca-Cola’s operations and increases the
company’s business risks.

 Sluggish growth of carbonated beverages

US customers have started to look for greater variety in their drinks and are becoming
increasingly health conscious. This has led to the decrease in consumption of
carbonated and other sweetened beverages in the US. The US carbonated soft drink
market generated total revenue of $63.9 billion in 2005, this representing a compound

44
annual growth rate (CAGR) of only 0.2% for the five year period spanning 2001-
2005. The performance of the market is forecast to decelerate with an anticipated
CAGR of -0.3% for the five year period 2005-2010 expected to drive the market to a
value of $62.9 billion by the end of 2010.

Moreover in the recent years, beverage companies like Coca-Cola has been criticized
for selling carbonated beverages with high amounts of sugar and unacceptable levels
of dangerous chemical content, and have been implicated for facilitating poor diet and
increasing childhood obesity. Moreover, the US is the company’s core market. Coca-
Cola’s revenues could be adversely affected by a slowdown in the US carbonated
beverage market.

45
CHAPTER 5- LATEST WITH COCA-COLA

 The Coca-Cola Company and Coca-Cola Enterprises strategically advance and

strengthen their partnership.

46
  Coca-Cola captures passion for celebration in new global commercials for
2010 FIFA World Cup.

 Coca-Cola dives into new social media campaign during Earth Month.

 Coca-Cola and Emeco create one-of-a-kind chair made from 111 recycled
plastic bottles.

 New plastic bottle 'Crushes' conventional thinking about environmental

action.

 Coca-Cola Greece receives three prestigious CSR awards.

 Coca-Cola Belgium official partner of sustainable energy Europe

campaign.

 The Coca-Cola Foundation donates $1 Million to assist with Haiti

earthquake relief efforts.

 Dasani® celebrates new PLANTBOTTLE™ packaging with limited edition

green hats designed by do-it-yourself expert Erica Domesek.
 The Coca-Cola Company engages its global system to "SWITCH OFF" lights
in support of Earth Hour.
 The Board of Directors of the Coca-Cola Company increases annual dividend
by 7 percent.
 Hindustan Coca-Cola Beverages invests 5 Crore for the revival of 1000 acre
Nemam Lake in Tamil Nadu.
 Coca-Cola India Commemorates Earth Hour.
 Celebrating International Women's Day.
 Coca-Cola India adjudged 'Organization of the Year' for PR Excellence.

47
 Coca-Cola Far East Ltd. Bangladesh partners with JAAGO foundation to
celebrate 'World Water Day’.
 Coca-Cola Celebrates World Water Day: Announces a USD 1 million
partnership with UN- habitat to undertake projects in Asia, Africa and South
America.

48
5.1 Research & Development

Innovation in our Products

Lucky people in Milan recently enjoyed a taste of "5,000 years of wisdom in a bottle,"
with the European launch of Jianchi, a new drink inspired by the ancient principles of
traditional Chinese wisdom.

Jianchi means "strong inner energy" in Chinese. The drink, made with fruit juices and
plant extracts and available in three flavors, is inspired by ancient Chinese wisdom to
enhance the inner balance.

The October 20th launch was celebrated with an all-day event that provided early
adopters and trendsetters an opportunity to experience Jianchi in an atmosphere
geared toward enhancing inner balance. Speaking at the event were Dr. Huaying Zhan
of the Asia Beverage Institute for Health & Wellness; an expert journalist on beauty
and oriental treatments; and a psychologist who discussed balancing mind, spirit and
body to find harmony.

Tai-Chi experts talked about energy, as guests sampled Jianchi Forza Millenaria.
Jianchi Serenità Millenaria was sampled in a natural and relaxed atmosphere where

49
the emphasis was on balancing yin and yang. And meditation experts were on hand as
guests tasted Jianchi Trasparenza Millenaria.

Jianchi products are now available in more than 100 pharmacies and herbal shops in
Milan.

Innovation in our Packaging

Made from up to 30% plant-based material, Plant Bottle packaging is a natural step
toward the bottle of the future and is a 100% recyclable bottle like traditional PET
plastic.

Innovation in our Equipment

Interactive Vending Machine

The video vender, which debuted at the 2008 Beijing Olympics, and is now in select
Simon Malls throughout the United States, integrates a Samsung 46-inch LCD touch

50
screen into the front of a Coca-Cola vending machine. The large-format display
combined with Flash technology, motion graphics, high-definition video and
Bluetooth capabilities for mobile downloads, creates a uniquely immersive experience
for consumers. The video vender took home the Gold Lion in the Point of Sale
category at the 2009 Cannes Lions International Advertising Festival.

Climate Friendly Coolers

The Coca-Cola Company is committed to sustainable refrigeration for its vending

equipment. Our Climate Friendly Coolers use a CO2 refrigeration system and HFC-
free insulation foam that reduce potential direct CO2 equivalent green house gas
emissions by approximately 99%. They also contain an intelligent management
system reducing energy use and indirect carbon emissions up to 35%. By using these
technologies, our typical Climate Friendly Cooler will reduce direct and indirect
carbon emissions by over 3 tons over the Cooler's lifetime.

51
Innovation in our Marketing

Coca-Cola Japan's new water brand I LOHAS is helping consumers contribute to

environmental sustainability with a new ultra-light "crushable" plastic bottle that
weighs 40% less than regular PET packaging. The label size has been reduced to save
in materials and the water is sourced from places close to the plant to further reduce
CO2 emissions from transportation.

The new product was launched with an innovative marketing campaign called
CRUSH ECO that demonstrates how consumer choices can affect carbon footprint.
When the empty bottle is twisted, it becomes crushed like a rag. It feels great to do it
and is a tangible action consumers can take every time they finish a bottle of I
LOHAS. Making the choice to buy, drink and "crush" the new I LOHAS package is a
very easy way they can act to make a difference.

The campaign featured a street art project that turned the crushed bottles into "art"
rather than rubbish. Sculptures and street installations called "Homeless Animals in
the Concrete Jungle" highlighted the issue of habitat destruction while demonstrating
the unique crushable PET bottle. A documentary video was created to show how easy
it is to crush and recycle the new packaging.

CRUSH ECO was awarded an Asia Marketing Effectiveness (AME) Award for Best
Integrated Marketing Campaign for leveraging consumers' increasing desire to help
solve environmental issues. The concept that consumers can make a significant
difference to the world they live in by simply changing their choice in a water brand

52
has revolutionized the market and the way consumers buy water in Japan. As a result,
I LOHAS became the No.1 brand in Japan in just 6 months.

Innovation in the Marketplace

The foodservice industry is an evolving world. Every day new restaurant concepts
open, new items appear on the menu, and new consumers walk through the door with
their own individual wants and expectations. As the leading beverage supplier for the
foodservice industry, our customers turn to us to provide the products, programs,
packaging and marketing support that are in tune with the ever-changing playing field
of foodservice.

53
As a result, we've become an organization where innovation is paramount to our
success. Through innovation, we have helped, and will continue to help, our
customers maintain and grow their businesses, especially in uncertain economic
times. Some of these innovations offer consumers more beverage choices; some tap
into growing categories like tea, coffee and smoothies; and some provide custom
beverages and food/beverage pairings.

Let's look at some recent examples:

 Our new Bevariety beverage dispenser allows consumers to choose

from 12 brands and multiple flavor shot options, totaling more than
50 different drink combinations, in the same footprint as the
existing legacy dispenser.
 Gold Peak variety tea dispenser is a self-service urn that offers four
different tea flavors, offering choice and variety in the growing tea
category.
 Juan Valdez caféREALE system enables foodservice operators to
serve hot, fresh cups of Colombian coffee on demand (no brewing
required).
 Our Minute Maid two- and four-valve juice dispenser delivers
healthy beverage choices throughout the day, such as orange juice
at breakfast and lemonade in the afternoon.
 The Coca-Cola Brands with Meals website provides customers
with suggested food and beverage pairings, and a tool to develop
specialty beverages with chefs from the Culinary Institute of
America.

In addition, we continue to develop beverages, programs and promotions to meet

specific customer needs, such as the successful custom milkshake, crew training and
marketing materials we recently created for one of our customers.

54
But innovation, like any change, comes with some inherent risk. As an organization,
we've been able to learn from innovations that worked as well as those that didn't.
Fortunately, many of our innovations have met with business success. But on the
occasions they haven't, we've used that knowledge to do things a better way. We've
learned from past experiences to introduce an innovation only when it's ready. Those
experiences, and the lessons learned, have helped guide the launch of Bevariety and
other innovations still in development.

If you think about it, a fountain innovation is what started this great Company. A
simple combination of syrup mixed with sparkling water created what is now the No.
1 beverage company in the world. We know firsthand that innovation is critical to our
-- and our customers'-- continued growth and success.

That's why innovation will keep our Company moving toward undisputed beverage
leadership and our customers ahead of the competition. There are so many new things
to offer our consumers and customers and revolutionary innovations still to come.

55
FINDINGS & RECOMMENDATIONS

FINDINGS

Coca-Cola in India

1. Creating Enormous Job Opportunities

2. A healthy growth to Indian economy

3. A pure commitment to Indian economy

RECOMMENDATIONS
After completing our project we have concluded some recommendation for the coca
cola company, which are following.

 Coca Cola Company should try to emphasis more on providing

their infrastructure in the market to facilitate their customers.

 According to the survey, conducted by the international firm

Pakistani people like little bit sweeter cola drink. So for this coca
cola company should produce their product according to the local
demand.

CONCLUSION
After thorough study of my project, I come to the conclusion that the marketing
strategy of
Coca Cola is working for them and the product is gaining popularity among youth day
by day.

56
BIBLIOGRAPHY

The data for this project has been taken from the following sites:
 www.theCoca-Colacompany.com
 www.google.com
 www.yahoo.com

My friends and our faculty Ms. Neha Ralli also helped me in completion of the
project.

57