Coca-Cola

Marketing Study
Exploring Opportunities In India
Agenda
Introduction
Challenges Faced
Opportunities Explored
Planning & Strategy
Actual Implementation & Results
Current Scenario & Future Prospects

Coca Cola The Company
Coca Cola Worldwide
It was founded by John Pemberton in 1886
It is No 1 nonalcoholic beverage company with a
market share of with a 52%
It is the largest brand in the world with a brand value
of 67 billion dollars.
It has its footmark in more than 200 Countries.

Mission
To refresh the World.
To inspire moments of Optimism
To create Value and Make a Difference
The Coca Cola promise simply says - The Coca Cola
Company exists to benefit and refresh everyone
who is touched by our business.

Coca Cola in India
Entered the India market in early 1790s.
Closed down it operations in India in 1977.
Came back to India in 1993.
Has a market share of 51%.
Created a direct employment of 25,000 people &
indirect employment of 1,50,000 people.
Hindustan Coca Cola Beverages is a 100% owned
bottler.

Challenges Faced
Re-entry in India
Late comeback of Coca Cola after PepsiCo had
already arrived in Indian market
Pepsis head start as a disadvantage for Coca colas
brand awareness
Acquisition of Parle
Thumbs Up or Coke decision
Competing with the help of Thumbs Up in the Cola
war

Beverages Market in India
No profitability after establishing presence against
competition
Marketing strategy focused on acquisitions and
urban Indian youth
Socio-cultural barriers in penetrating Indian rural
markets
Preference to traditional beverages and low
consumption statistics

Other Cases & Impact on Brand
Centre for Science and Environments pesticide
residue accusations
Multiple charges across India for groundwater
exploitation at bottling plants
Impact on Coca Colas brand value due to
environmental criticisms
Revised strategies to deal with persistent accusations
against non eco friendly operations

Exploring Opportunities
Market Scenario
Paradigm Shift in concentration of markets from
Urban to Rural
Economic growth in agricultural sector-7%,Industrial
Sector-3%

Beyond Urban India
Markets which can be entered
Growth & prospect
Infrastructure & maintenance
Television & media connectivity

Planning & Strategy
Planning on segmentations
Think local, act local mantra followed
Looking at India as two different markets Urban &
Rural
Different strategies for different markets
Multiple Ad & media campaigns

The 3 As
3As : Availability, Affordability and Acceptability
Availability tapping the distribution channels
Affordability Pricing strategy to increase sales
Acceptability Touching the sentiments of different
people in different styles and making them accept
COKE as a brand and its drink

More Marketing
Aggressive marketing through TV ads, hoardings, and
also associating with top celebrities to cash on their
image
Invest in channels to improvise distribution
Also involving itself in CSR to improve its brand and
make people associate with itself
Implementation & Results
Pricing & Infrastructure
Average price brought down to Rs.5
Retail outlets doubled from 80,000 to 1,60,000
2,00,000 refrigerators supplied to vendors
5000 trucks and autos purchased

Advertising & Media
Ads featuring Aamir Khan
Thanda matlab Coca Cola & Life ho toh aisi
Double spending on Doordarshan
Local forms of entertainment tapped


Distribution Strategy
Near Results
Rural penetration 13% in 2001 to 25% in 2003
39% volume growth in 2002
Rural markets growth - 37%
Per capita consumption doubled

Results
Rural market 50% of sales
Market share 58% over Pepsis 42% (as of Nov 2012)

Current Scenario & Future Prospects
Competition
Thanda - chalega kya.
Pepsi gives tough fight with almost similar investment, advertisement,
Strategies and Products
Parle resurges with refreshing drinks as Appy Fizz,Fruity, LMN
PepsiCo also has a snack product line including Lays, Cheetosand Quaker
OATs
PepsiCo provide carbonated drinks, Fruit Drinks and Packaged Drinking
Water

Other Alternatives
Bottled water, juices, sports drinks, coffee tea, etc
global soft drinks market is expected to slightly
decelerate
Sports drinks and other energy drinks are also
expected to increase in growth
To compete with the substitutes industry, Coca cola
has diversified into other substitutes.

Potential Entrants
Difficult for new entrants
High capital requirements
New age beverages selling health conscious
customer may acquire the market share

Diversifying into Non-Carbonated
Drinks & New Strategies
Launch of Minute Maid and Burn
Parivartan strategy
Sustainability
Continued growth

Thank you!!


Questions????