i. Brief Introduction of Marketing Plan
i. Objectives of Marketing Plan
ii. Mission statement of Coco- cola
iii. Objectives of marketing plan
iv. Execution summary
v. Market share
vi. Objectives of the company
vii. Current market situation in India
viii. SWOT Analysis
ix. Marketing strategy – Marketing mix
xii. Issues and initiatives
Introduction of the Company
•Founded in 1892 after the formula was invented by
Pharmacist John S. Pemberton
•Headquartered at Atlanta, Georgia-USA
•Currently offers more than 500 brands in over 200 countries
•Provides 1.7 billion servings a day
•Of this Coca Cola(Coke) accounts for nearly 78%
•Sales distributed as follows: 42%(USA), 38%(Mexico, India,
Brazil, Japan and China), 20%(Rest of the World)
•Financial Details : Revenue US$ 35.119 billion
Operating income US$ 8.449 billion
Net income US$ 11.809 billion
Total assets US$ 72.921 billion
Total equity US$ 31.317 billion
Fun Fact 1:3.1% of all beverages consumed
around the world are Coca-Cola products
Of the 55 billion servings of all kinds of beverages drunk each
day (other than water), 1.7 billion are Coca-Cola
• Our mission statement is to maximize shareowner value over
• In order to achieve this mission, we must create value for all
the constraints we serve, including our consumers, our
customers, our bottlers, and our communities. The Coca Cola
Company creates value by executing comprehensive
business strategy guided by six key beliefs:
1. Consumer demand drives everything we do.
2. Brand Coca Cola is the core of our business
3. We will serve consumers a broad selection of the
nonalcoholic ready-to–drink beverages they want to drink
through out the day.
4. We will be the best marketers in the world.
5. We will think and act locally.
6. We will lead as a model corporate citizen.
The Mission Statement of the Coca Cola
• The ultimate objectives of our business strategy are to increase volume,
expand our share of worldwide nonalcoholic ready to drink beverages
sales, maximize our long-term cash flows, and create economic value
added by improving economic profit.
• The Coca Cola system has more than 16 million customers around the
world that sells or serves our products directly to consumers. We keenly
focus on enhancing value for these customers and helping them grow
their beverage businesses. We strive to understand each customer’s
business and needs, whether that customer is a sophisticated retailer in
a developed market a kiosk owner in an emerging market.
• There are nearly 6 million people in the world who are potential
consumers of our company’s product. Ultimately, our success in
achieving our mission depends on our ability to satisfy more of their
beverage consumption demands and our ability to add value for
customers. We achieve this when we place the right products in the
right markets at the right time.
Fun Fact 2:Coke makes so many different
beverages that if you drank one per day, it would
take you over 9 years to try them all.
Coca-Cola has a product portfolio of more than 3,500
beverages (and 500 brands), spanning from sodas to energy
drinks to soya-based drinks
Introduction of Marketing Plan
•A part of business plan
•Most marketing plans cover one year
•General to specific : Vision to mission & then
down to the individual action plans
•The most important output of marketing process.
Objectives of Marketing Plan
•To set realistic & unambiguous goals.
•To develop an action plan for achieving these
•To align the marketing activities with corporate
•To respond to rapidly changing market conditions.
•To quantify the outcome of each activity.
•Doubling the revenues by 2020
•Making a positive difference in the communities
•Project the company as a responsible corporate citizen
a) Sustainable water use & packaging
b) Climate protection
•Lift the corporate brand image
•Connect with global middle class by creating new products
and packaging formats for all lifestyles and occasions.
Fun Fact 3:Coca-Cola's $35.1 billion in
revenue makes it the 84th largest economy in the
world, just ahead of Costa Rica
• MARKET SHAREMARKET SHARE:
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.
• GLOBAL MARKET SHAREGLOBAL MARKET SHARE::
The following table can show the worldwide operating segments.
Unit case growth Non-
6% 5% 5% 5% 4% 4% 18% 9% 70
• This shows that the market of the company is
geographically vast and it is controlling it with great
success. In 2002, the company grew their carbonated soft-
drink business by nearly 250 million unit cases and
generated record volumes. 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. The operation
income earned by Coca Cola Company can be illustrated by
the following pie chart.
• 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. The data of the global unit sale of the Coca
Cola Company can be represented by following chart.
1971 1981 1991 2002
unit sale in billions
So there is positive growth in the market of the Coca Cola
Company. There is a worldwide volume increase by 4% with
strong international growth of 5%. This is only due to the
innovative marketing programmers, which has deepened the
relationship of the customers and Coca Cola. The financial
health and success of their bottling partners is a critical
component of The Coca-Cola Company's ability to build and
deliver leading brands.
Objectives of the Company
•To Refresh the World... In body, mind, and spirit
•To Inspire Moments of Optimism…Through our brands and our
•To Create Value and Make a Difference... Everywhere we
Vision for 2020 Sustainable Growth:
•PROFIT: Maximizing return to shareowners while being
mindful of our overall responsibilities.
•PEOPLE: Being a great place to work where people are inspired
to be the best they can be.
•PORTFOLIO: Bringing to the world a portfolio of beverage
brands that anticipate and satisfy peoples’ Desires and needs.
•PARTNERS: Nurturing a winning network of partners and
building mutual loyalty.
•PLANET: Being a responsible global citizen that makes a
Fun Fact 4:The Coca-Cola brand is worth an
estimated $74 billion: more than Budweiser,
Pepsi, Starbucks and Red Bull combined
Current Market Situation in India
•The carbonated drinks market is close to Rs 6,000 crore
($1.36 billion) with growth at 10-12 per cent
•The fruit juices and fruit-based drinks market is close to Rs
5,000 crore ($1.13 billion), growing at 35-40 per cent annually.
•Within the hot beverages category, India is the largest
producer of tea and accounts for 28 per cent of the global
production at 956 million kilograms annually.
•The total turnover of the tea industry is over Rs 8,000 crore ($
1.8 billion), growing at a rate of 1.2 per cent annually.
•India is the world’s 5th largest producer of coffee, accounting
for 4 per cent of the world’s production.
•In India, Coca Cola and Pepsi hold a market share of 95% of
which coca cola has 60.8% the rest belongs to Pepsi.
Main Indian Competitors:
Pepsi Co.-Pepsi, Slice, Dew, Mirinda, Tropicana Juice, Lipton
Nestlé-Nestea and other Milk Related Products.
Dabur-Real Fruit juice
Products To Offer in Current Market Situation
Juices Minute Maid
Iced Tea Nestea
Water Kinley Water
Tonic Water Schwepps
Energy Drink Burn
Canned Coffee Georgia
Fun Fact 5:If every drop of Coke ever produced
were put in 8-ounce bottles and laid end-to-end,
they would reach the moon and back over 2,000
Fun Fact 6:If you stacked up Coke's 2.8 million
vending machines, they would take up 150.2
million cubic feet of space -- the size of 4 Empire
SWOT Analysis of Company
•Strong Brand Name
•“Thanda Matlab Coca Cola”
SWOT Analysis of Company
•Not No 1 In India
•Under Utilization Of Capacity
•Sales In India
SWOT Analysis of Company
•Developing A Global Brand
•Coca Cola’s Bottling System
•Has A Potential
•Expansion Into New Market
•Possible Growing Demand
SWOT Analysis of Company
•Not Necessarily Married
•Change Of Taste
• Product Lifecycle of Coke:
• Product life cycle has four phases
• 1. Introduction
• 2. Growth
• 3. Maturity
• 4. Decline.
• The markets where Coke is a dominant player are United
States of America, Europe and Asia, Africa. There is a vast
difference in terms of above given phases for example, in
U.S.A & Europe it has reached maturity stage where it
can’t expand its market more but if we consider Asia, it is
still in the growth phase.
• Coca-Cola is currently going through the maturity stage
in Western countires. This maturity stage lasts longer
than all other stages. Management has to pay special
attention to products during this stage of the product
life-cycle. During the maturity stage, products usually go
through a slowdown in sales growth. According to Coca-
Cola's 2001 annual report, sales have increased by 1.02%
compared to last year. This percentage has no
comparison to the high level of growth Coca-Cola
enjoyed during its growth stage. To add a little variation
Coca-Cola took the Coca-Cola Classic and added
variations to it, including Cherry Coke, Vanilla Coke and
Diet Coke. Also Coca-Cola went from 6-oz. glass bottles
to 8-oz. cans to plastic liter bottles, all helping increase
Fun Fact 7:The red and white Coca-Cola logo is
recognized by 94% of the world's population
•Modulation in Prices
• Like any company who has successfully endured a century of
existence, Coca- Cola has had to remain tremendously fluent with
their pricing strategy. They have had the privilege of a worthy
competitor constantly driving them to be smarter, faster, and
better. A quote from Pepsi Co's CEO "The more successful they
are, the sharper we have to be. If the Coca-Cola Company didn't
exist, we'd pray for someone to invent them." states it simply. The
relationship between Coca-Cola & Pepsi is a healthy one that each
corporation has learned to appreciate.
• Throughout the years Coca-Cola has made many pricing decisions
but one might say that their ultimate goal has always been to
maximize shareholder value. As cola consumption has decreased
in the US colas have come to realize the untapped international
market. In 2003 both Coke and Pepsi had a solid presence in India
and had each introduced a 300mL bottle. In order to grab market
share Pepsi began to drop prices (even with summer approaching,
which was contrary to policy in America). Shortly thereafter, Coca-
Cola decided to drop their prices slightly, but focused on the
reduced price point of their 200mL container. Coca- Cola planned
to use the lower price point to penetrate new cities that were
especially price sensitive. The carbonated soft drink market in
India is nearly 37% of the total beverage market there.
• This low price strategy was not unfamiliar to Coca-Cola. Both Coke
& Pepsi utilized a low price strategy in the early 1990s. After
annihilating the low price store brands, Coke chose to reposition
itself as a "Premium" brand and then raise prices.
• Coca-Cola products would appear, on the shelf, to have the most
expensive range of soft drinks common to supermarkets, at
almost double the cost of no name brands. This can be for several
reasons apart from just to cover the extra costs of promotions, for
which no name brands do without. It creates consumer
perceptions and values. When people buy Coca-Cola they are not
just buying the beverage but also the image that goes with it,
therefore to have the price higher reiterates the fact that the
product is of a better quality than the rest and that the consumer
is not cheap. This is known as value-based pricing and is used by
many other industries in attracting consumers.
• In India, the average income of a rural worker is Rs.500 a month.
Coca Cola launched a 200 ml bottle for just Rs.5, an affordable
amount on the pockets of the rural audience.
Fun Fact 8:Around the world, the average
person consumes a Coke product every four days
• Coca-Cola entered foreign markets in various ways. The most
common modes of entry are direct exporting, licensing and
• Besides beverages and their special syrups, Coca-Cola also directly
exports its merchandise to overseas distributors and companies.
Other than exporting, the company markets internationally by
licensing bottlers around the world and supplying them with the
syrup needed to produce the product.
• There are different types of franchising. The type that is used by
Coca-Cola Company is manufacturer-sponsored wholesaler
franchise system. It is very comparable to licensing but the only
difference is that the finished products are sold to the retailers in
• Coca Cola has managed their company’s marketing and sales
strategy within channels. Have you ever considered the
significance of the Coke vending machine to the success and
profitability of the Coca Cola company? This channel is direct to
consumer and vending machines often have little to no
competition and no trade or price promotions.
• The Coke Company operates three primary delivery systems for
its business channels:
– Bulk delivery for the channels of large Supermarkets, Mass
Merchandisers and Club stores;
– For smaller channels Coke does advanced sale delivery for
convenience stores, drug stores, small supermarkets and on-
premise fountain accounts.
– Full service delivery for its full service vending customers.
• Key Channel Listing
– Convenience Stores
– Fast Food
– Petroleum Retailers
– Chain Drug Stores
– Mass Merchan-disers
• In 2006, the Company began changing its delivery method for its route
delivery system. Historically, the Company loaded its trucks at a
warehouse with products the route delivery employee would deliver. The
delivery employee was responsible for pulling the required products off a
side load truck at each customer location to fill the customer's order.
Coke began using a new CooLift® delivery system in 2006 in a portion of
the Company's territory which involves pre-building orders in the
warehouse on a small pallet the delivery employee can roll off a truck
directly into the customer's location. The CooLift® delivery system
involves the use of a rear loading truck rather than a conventional side
loading truck. Coke will continue to rollout this program over the next
several years since they expect such significant savings and more efficient
deliverys. This is a huge investment for Coke.
• The company works through independent bottlers of Coke. They work in
coordination with the Coke company which produces the 'secret formula
concentrate' and ships to the distributors and bottlers for final processing
and packaging prior to shipment to the stores.
• Coca-Cola floods all possible retailing stores in satisfying the third part,
place. In supermarkets and convenient stores, Coca-Cola products are
always easy to identify, and usually make up the greater proportion of
options to buy. This increases their market exposure through effective
use of the retailers. For a FMCG it is important that they can be found
and purchased easily. With many automatic Can machines located in
many sports stadiums and shopping malls, you don't even need to go to a
store to buy a drink. This greatly enhances the speed of purchase.
• The company produces concentrate, which is then sold to various licensed
Coca-Cola bottlers throughout the world. The bottlers, who hold
territorially exclusive contracts with the company, produce finished
product in cans and bottles from the concentrate in combination with
filtered water and sweeteners. The bottlers then sell, distribute and
merchandise Coca-Cola in cans and bottles to retail stores and vending
machines. Such bottlers include Coca-Cola Enterprises, which is the largest
single Coca-Cola bottler in North America and Western Europe and food
• The Coca-Cola Company only produces a syrup concentrate, which it sells
to various bottlers throughout the world who hold Coca-Cola franchises
for one or more geographical areas. The bottlers produce the final drink by
mixing the syrup with filtered water and sugar (or artificial sweeteners)
and then carbonate it before filling it into cans and bottles, which the
bottlers then sell and distribute to retail stores, vending machines,
restaurants and food service distributors.
• The Coca-Cola Company owns minority shares in some of its largest
franchises, like Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic
Bottling Company (CCHBC) and Coca-Cola FEMSA, but fully independent
bottlers produce almost half of the volume sold in the world. Since
independent bottlers add sugar and sweeteners, the sweetness of the
drink differs in various parts of the world, to cater for local tastes.
India A(4%):“Life Ho To Aisi”
•This segment sought social bonding as a need and responded
to inspirational messages, celebrating the benefits of their
increasing social and economic freedoms.
India B(96%):“Thanda Matlab Coca-Cola”
•Use of Idiomatic expressions and Local language
•Distribution Infrastructure: Retail Outlets Doubled in 2 yrs.
(From 80,000 to 160,000)
•Doubled the Market Penetration in rural areas (13%
•Campaign of the Year(2003), Advertiser of the Year(2003)
Fun Fact 9:Coca-Cola spends more money on
advertising than Microsoft and Apple combined
Coca-Cola advertising budget (2010): $2.9 billion
Microsoft advertising budget (2010): $1.6 billion
Apple advertising budget (2010): $691 million
Implementation through Advertising:
Coca Cola: Imran Khan(Endorsement Fee:3.35 cr)
Aamir Khan(Endorsement Fee:10 cr)
Thums up-Akshay Kumar(Endorsement Fee: 5 cr)
Fanta-Genelia D’souza (Fee: 1.13 cr)
First Commercial Sponsor of Olympic Games in 1928
Fifa World Cup(Since 1978)
Major League Baseball, NBA, NHL.
1996 Cricket World Cup
IPL: Delhi Daredevils
English Football League(Coca Cola Championship, League 1, 2)
Implementation through Advertising:
Hollywood Movies : Borat, Click, Failure to Launch, Glory
Road, Gridiron Gang, Hostel, Mission: Impossible III, Silent Hill,
The Covenant, The Departed
Bollywood Movies: Kaho Naa Pyar Hai, Rang De Basanti,
Taal, Shree 420, Kuch Naa Kaho, Bobby.
Campaigns & Collaborations:
• Coke Studio with MTV
• Diwali Campaign: “Come Home on Deepawali”
• “Brrrrrr” Campaign
Coca Cola has an global annual advertising budget of
$1.6 billion a year.
2011-12 Q1 Highlights(Coca Cola India):
Total Sales:$356.9 million
Earning per Share:$1.69
Current Trading Price:$63.70
Return on Equity:30.9%
Return on Assets:15.1%
Return on Invested Capital:25.1%
Gross Profit Margin:68.4%
Issues and Initiatives in India
– The Issue: Several droughts in a number of villages in
Kerala and Uttar Pradesh where the plants operated
were linked as a possible cause due to the large usage
of water for production.
– The Initiatives:
– The Results:
• Water usage ratio reduced by more than 25% from
• Waste water treated to a level to support aquatic life
• Rainwater harvesting potential equal to 93% of ground
Issues and Initiatives in India
•The Pesticide Controversy:
– The Issue: in 2006, CSE established that Coke had 25 times the
pesticide residue than found in 2003 which posed health risks, which
also resulted in a 11% drop in sales.
– The Initiative via Advertisements.
•Cost efficiency: To get the achievement of cost efficiency
we have to keep certain points in our mind they are resale of
scraps, inventory management, work distribution.
•Profit generation: In the SWOT analysis we have seen there
is a great opportunity products, these can be turnkey for the
company. The company should try to work on export. They
should lay more emphasis on export.
•Improving technology: There is no doubt that the product of
company is not good. But from time to time the regular
improvement of the technology. It improves the quality of the
product as well as save the time.
•Becoming a global player: With the last dealings we can
conclude that the company had satisfy there maximum
customers. After those dealings the company should try to
get a good name in India as well as in international market.