Coca-Cola India, and its
contribution towards GDP
NAME: ANJUM KHAN
CLASS: MBA CORE (B)
ROLL NO. : 35
SUBLECT: INDIAN ECONOMY
The Coca-Cola Company,
incorporated on September 5,
1919, is a beverage company.
Its current CEO is Mr. Muhtar
Kent. The Company owns or
licenses and markets more
than 500 nonalcoholic
beverage brands, primarily
sparkling beverages but also a variety of still beverages, such as waters,
enhanced waters, juices and juice drinks, ready-to-drink teas and coffees,
and energy and sports drinks. It owns and markets a range of nonalcoholic
sparkling beverage brands, which includes Coca-Cola, Diet Coke, Fanta and
Sprite. The Company markets, manufactures and sells beverage
concentrates, sometimes referred to as beverage bases, and syrups, including
fountain syrups, and finished sparkling and still beverages. Outside the
United States, it also sells concentrates for fountain beverages to its bottling
partners. The Company sells sparkling beverages and a variety of still
beverages, such as juices and juice drinks, energy and sports drinks, ready-
to-drink teas and coffees, and certain water products, to retailers or to
distributors, wholesalers and bottling partners who distribute them to
retailers. The Company‟s core sparkling beverages include Coca-Cola,
Sprite, Fanta, Diet Coke / Coca-Cola Light, Coca-Cola Zero, Schweppes,
Thums Up, Fresca, Inca Kola, Lift and Barq's. Its energy drinks include
Burn, Nos and Real Gold. Its juices and juice drinks include Minute Maid,
Minute Maid Pulpy, Del Valle, Simply, Hi-C, Dobriy and Cappy. The
Company‟s other still beverages include glaceau vitaminwater and Fuze.
The Company‟s coffees and teas include Nestea teas, Georgia coffees, Leao
/ Matte Leao teas, Dogadan teas and Ayataka teas. Its sports drinks include
Powerade and Aquarius. The Company‟s waters include Ciel, Dasani, Ice
Dew, Bonaqua and Kinley. The Company competes with PepsiCo, Inc.,
Nestle, Dr Pepper Snapple Group, Inc., Groupe Danone, Kraft Foods Inc.
This is the remarkable story about the evolution of an iconic brand and the
company that bears its name. Since its birth at a soda fountain in downtown
Atlanta, Georgia, in 1886, Coca ‑ Cola has been a catalyst for social
interaction and inspired innovation. These unique moments in history,
arranged in chronological sequence, have helped create a global brand that
provides billions of moments of refreshment every day.
May 8. Coca‑Cola is created by John S. Pemberton and served at Jacobs‟
Pharmacy. Nine drinks a day are sold during this year.Company accountant,
Frank Robinson, names the drink
“Coca ‑ Cola,” and thinking the
two Cs would look well in
advertising, pens the famous
Spencerian script logo.
Coupons are first used to promote Coca‑Cola.John Pemberton registers his
“Coca‑Cola Syrup and Extract” label as a copyright with the U.S. Patent
Asa Candler, who began to acquire „The Coca‑Cola Company‟ in 1888,
finalizes the purchase and incorporates „The Coca‑Cola Company‟ as a
Georgia Corporation.An advertising budget of $11,000 is authorized.
The first building is erected for the sole purpose of
housing „The Coca‑Cola Company‟. It is quickly
outgrown as the Company moves to larger quarters
five times in the next 12 years.
The first advertising for Coca‑Cola appears in national magazines.Annual
sales of Coca‑Cola hit the 1 million‑gallon mark.Lillian Nordica, noted
opera singer, begins to endorse Coca ‑ Cola and appears in nationwide
advertising in 1905.
The Coca‑Cola Bottler magazine begins publication and is produced for
more than 80 years.
The annual advertising budget for The Coca‑Cola Company surpasses $1
million for the first time.
Asa Candler retires from the Company to
successfully run for mayor of Atlanta.
The first bottling plants are opened in Europe in Paris and
Bordeaux.The Coca‑Cola Company is purchased by a group of investors led
by Ernest Woodruff for $25 million.
The first employee publication, „The Friendly Hand‟, begins publication.
The first use of the slogan “Thirst Knows No Season” helps transition Coca‑
Cola from a summer beverage to one enjoyed year‑round.
The Company begins sponsoring its first radio program, “Vivian the Coca‑
The Company begins its long‑term association with the Olympic Games by
supplying drinks from kiosks surrounding the venues in Amsterdam.
The Coca‑Cola Export Corporation is created to market Coca‑Cola outside
the United States.
Seeking to create an advertising program
that links Coca‑Cola with Christmas, artist
Haddon Sundblom creates his first
illustration showing Santa Claus pausing for
a Coke. For the next three decades, from
1931 to 1964, Sundblom paints images of Santa that help to create the
modern interpretation of St. Nick.
The 50th anniversary of Coca‑Cola is celebrated. Artist N. C. Wyeth creates
the calendar for that year.
“Coke” becomes a registered trademark of The Coca‑Cola Company.
The Coca ‑ Cola Company and its bottlers sponsor the first animated
television special for the cartoon strip Peanuts, “A Charlie Brown
Coca‑Cola introduces its first sports drink when Olympade is test marketed
in the United States. The packaging features a logo for the U.S. Olympic
The Coca ‑ Cola Company and the Fédération Internationale de Football
Association (FIFA) agree to the first‑ever sponsorship between a company
and an international sports governing body.
The Coca ‑ Cola Company purchases Columbia Pictures Industries, Inc.
While the Company owns the movie studio, “Gandhi” wins an Academy
Award for best picture.
The Coca‑Cola Company acquires the Barq‟s root beer brand.
The Coca‑Cola Company announces a 100‑
year partnership with the National Basketball
The Coca ‑ Cola Company and Nestlé create a new company, Beverage
Partners Worldwide, to market ready‑ to‑serve coffee and tea beverages.
The new World of Coca ‑ Cola opens at Pemberton Place in Atlanta.
The Coca-Cola Company acquires Energy Brands Inc. (glacéau), maker of
vitaminwater and smartwater.
Sponsorship of the Beijing 2008 Olympic Games connects with more than
500 million consumers in China.A Coca‑Cola Facebook page is established
by two fans. The site has over 22 million fans worldwide as of January 2011
and continues to grow.
In the aftermath of a devastating earthquake,
The Coca ‑ Cola Company launches the Haiti
Hope Project, a public‑private initiative that aims to develop a sustainable
mango industry in Haiti.
The Coca‑Cola Company celebrates 125 years of brand Coca‑Cola.
MISSION VISION AND VALUES OF COCO-COLA
Its Roadmap starts with a mission, which is enduring. It declares its purpose
as a company and serves as the standard against which they weigh their
actions and decisions.
- To refresh the world.
- To inspire moments of optimism and happiness.
- To create value and make a difference.
Their vision serves as the framework for their Roadmap and guides every
aspect of their business by describing what they 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.
- Profit: Maximize long-term return to shareowners while being
mindful of our overall responsibilities.
- Productivity: Be a highly effective, lean and fast-moving organization.
Their Winning Culture defines the attitudes and behaviors that will be
required for them to make their 2020 Vision a reality.
Their values serve as a compass for our actions and describe how they
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 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
- Act Like Owners
COCA-COLA IN INDIA
The Coca-Cola Company re-entered India through its wholly owned
subsidiary, Coca-Cola India Private Limited and re-launched Coca-Cola in
1993 after the opening up of the Indian economy to foreign investments in
1991. Since then its operations have grown rapidly through a model that
supports bottling operations, both company owned as well as locally owned
and includes over 7,000 Indian distributors and more than 2.2 million
retailers. Today, its brands are the leading brands in most beverage
segments. The Coca-Cola Company's brands in India include Coca-Cola,
Fanta Orange, Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Minute Maid
Pulpy Orange, Minute Maid Nimbu Fresh and the Georgia Gold range of
teas and coffees and Vitingo.
In India, the Coca-Cola system comprises of a wholly owned subsidiary of
The Coca-Cola Company namely Coca-Cola India Pvt Ltd which
manufactures and sells concentrate and beverage bases and powdered
beverage mixes, a Company-owned bottling entity, namely, Hindustan
Coca-Cola Beverages Pvt Ltd; thirteen licensed bottling partners of The
Coca-Cola Company, who are authorized to prepare, package, sell and
distribute beverages under certain specified trademarks of The Coca-Cola
Company; and an extensive distribution system comprising of our
customers, distributors and retailers. Coca-Cola India Private Limited sells
concentrate and beverage bases to authorized bottlers who are authorized to
use these to produce its portfolio of beverages.These authorized bottlers
independently develop local markets and distribute beverages to grocers,
small retailers, supermarkets, restaurants and numerous other businesses. In
turn, these customers make their beverages available to consumers across
COCA-COLA’S CONTRIBUTION TOWARDS GDP
The Coca-Cola system in India has already invested USD 2 Billion till 2011,
since its re-entry into India. The company will be investing another USD 5
Billion till the year 2020. The Coca-Cola system in India directly employs
over 25,000 people including those on contract. The system has created
indirect employment for more than 1,50,000 people in related industries
through its vast procurement, supply and distribution system. They strive to
ensure that the work environment is safe and inclusive and that there are
plentiful opportunities for the people in India and across the world.
The beverage industry is a major driver of economic growth. A National
Council of Applied Economic Research (NCAER) study on the carbonated
soft-drink industry indicates that this industry has an output multiplier effect
of 2.1. This means that if one unit of output of beverage is increased, the
direct and indirect effect on the economy will be twice of that. In terms of
employment, the NCAER study notes that "an extra production of 1000
cases generates an extra employment of 410 man days."
As a Company, its products are an integral part of the micro economy
particularly in small towns and villages, contributing to creation of jobs and
growth in GDP. Coca-Cola in India is amongst the largest domestic buyers
of certain agricultural products.
As an industry which has strong backward and forward linkages, its
operations catalysis growth in demand for products like glass, plastic,
refrigeration, transportation, and Industrial and agricultural products. Its
operations also lead to incremental growth for enterprises engaged in post-
production activities like merchandising, marketing and sales. In addition,
they share best practices and technological advancements with its suppliers,
vendors and allied industries which often lead to improvement in the overall
standards of quality across industries.
The Coca-Cola Company has always placed high value on good citizenship.
The Coca-Cola India Foundation is now taking forward in the community at
large, projects and programs of social relevance to carry forward the
message of inclusive growth and development.
SWOT ANALYSIS OF COCA-COLA
1.The number one beverages brand in terms of reach and sales.
2. Popular subsidiary brands like Coca Cola, Fanta, Kinley, Limca, Maaza,
Minute Maid, etc.
3. Global reach with presence in over 200 countries.
4.More than 500 brands on offer.
5.An employee strength of around 1,50,000 people globally.
6.Strong and efficient supply chain network, ensuring that all the products
are available even in the most remote places.
7.Strong financial condition.
8.Strong brand recall through advertising and marketing by associating with
celebrity brand ambassadors.
9.CSR activities in the field of water conservation and recycling, education,
10. Effective and efficient packaging technique giving emphasis on
recycling and reusing.
11. Long association with international sports events, sponsorships etc.
1.The presence of traces of pesticides in the cola beverages have caused
damage to the brand image.
2.Strong competition in the aerated drinks segment from Pepsi Co means
constant fight over market share.
3.No presence in the snacks and food industry.
1.Increase its reaching untapped countries and market.
2.Market and popularize the less known products.
3.Acquire other companies.
4.Diversify its product portfolio by entering into snacks industry to compete
with Pepsi Co.
1.Health consciousness amongst people.
2.Difficulty in complying with different government regulations and norms
in different countries.
3.Inflation, economic slowdown and instability.
MINUTE MAID PULPY ORANGE
MINUTE MAID NIMBU FRESH
MINUTE MAID GUAVA
MINUTE MAID APPLE
MINUTE MAID MANGO
MINUTE MAID MIXED FRUIT
BRAND LOCALISATION STRATEGY: THE TWO INDIA’S
India A: “Life ho to aisi”
“India A,” the designation Coca-Cola gave to the market segment including
metropolitan areas and large towns, represented 4% of the country‟s
population.This segment sought social bonding as a need and responded to
aspirational messages, celebrating the benefits of their increasing social and
economic freedoms. “Life ho to aisi,” (life as it should be) was the
successful and relevant tagline found in Coca-Cola‟s advertising to this
India B: “Thanda Matlab Coca-Cola”
Coca-Cola 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. “India B” included small towns
and rural areas, comprising the other 96% of the nation‟s population. This
segment‟s primary need was out-of-home thirst-quenching and the soft drink
category was undifferentiated in the minds of rural consumers. Additionally,
with an average Coke costing Rs. 10 and an average day‟s wages around Rs.
100, Coke was perceived as a luxury that few could afford.
Coke‟s advertising and promotion strategy pulled the marketing plan
together using local language and idiomatic expressions. “Thanda,” meaning
cool/cold is also generic for cold beverages and gave “Thanda Matlab Coca-
Cola” delicious multiple meanings. Literally translated to “Coke means
refreshment,” the phrase directly addressed both the primary need of this
segment for cold refreshment while at the same time positioning Coke as a
“Thanda” or generic cold beverage just like tea, lassi, or lemonade. As a
result of the Thanda campaign, Coca-Cola won Advertiser of the Year and
Campaign of the Year in 2003.
COCA-COLA’S ADVERTISING STRATEGY IN INDIA
Coca Cola‟s Campaign
The Coca Cola campaign in India, however, has been different from that of
Pepsi, even though they both share similar product traits. Coca Cola had a
presence in India before 1977, but
was subsequently forced to exit the
Indian market. When the company
returned to India post
liberalization, it came up with an
innovative communication and
advertising strategy. Coca Cola has
essentially been following the
principle of differentiation.
„Jo Chaaho Ho Jaaye‟, „Coca Cola Enjoy‟ was one of the company‟s first
campaigns in India. It was remarkably well executed, and appealed both at a
product level as well as at an emotional level. These ads featured celebrities
such as Hrithik Roshan and Aishwarya Rai. The target segment for Coca
Cola in its initial days was the youth segment and this campaign clearly
connected well with the segment. However, the next advertising campaign
of „Thanda Matlab Coca Cola‟ was launched with an objective to have a
mass appeal. The campaign
leveraged the product platform
rather than the emotional
platform that it had established
It is however, important to note here that Coca Cola made some exceptions
for India. The company has similar marketing strategies across geographies
and usually doesn‟t depend on celebrity endorsements. But given the great
fan-following, and in adapting to the Indian context, the company had to
initially deviate from its set charter. However with the current campaign of
„Open Happiness‟, Coca Cola seems to have achieved both an emotional as
well as a mass appeal. There is a very natural connect with the target
segment, that of celebrating every day, and sharing small moments of joy
with our loved ones, irrespective of any barriers.
Sprite - the other brand
from the Coca Cola stable
– began its journey with the
campaign titled „All Taste
No Gyaan‟. This appealed
greatly to the youth who
don‟t like to be preached and relish their sense of ownership and decision
making. Sprite has never depended on celebrity endorsements as a way to
gain brand recognition or consumer recall. The ads are designed to be very
witty, and generally connect very well with the target audience by capturing
every day moments. „Seedhi Baat No Bakwaas‟ - its next campaign –
instantly connected with the target audience by coming across as a brand
that was different from the other, one that focused on the individuality of the
consumer. The emotional appeal is much stronger and shows a clear sign of
maturity of the campaign.
Coca-Cola operates in more than 200 countries. Because of the local nature
of its business, it is in the unique position to contribute to the economic
vitality of even the most remote communities around the world. Its global
business stimulates job creation throughout our value cycle. It contributes to
the economic success of each community by employing local people; paying
taxes to governments; paying suppliers for goods, services and capital
equipment; and supporting community investment programs. Past
independent studies on the economic impact of its business in Asia, Africa
and Eastern Europe have consistently shown that for every job in the Coca-
Cola system, an average of 10 more jobs are supported in local communities.
To produce the world's best known product, The Coca-Cola Company has to
employ the highest quality processes and establish standards which
guarantee the production of a standardised product which meets consumers'
high expectations each and every time they drink a bottle or can of Coca-
In order to guarantee these standards the Company has had to develop a
close relationship with its franchisees based on a mutual concern for quality.
Total Quality Management lies at the heart of this process involving a
continuous emphasis on getting quality standards right every time and on
continually seeking new ways to improve performance.
Coca-Cola has spent over $2 million just on advertising and marketing. This
makes Coca-Cola well known in many countries In addition, keeping up
with today's new trends, the Coca-Cola Company also advertise its products
on myspace, facebook and twitter. The Coca-Cola Company knows that no
business can run without a plan. Because the Coca-Cola Company has been
able to the set the entry barrier in the beverage business very high, new
companies are discourage to compete with Coca-Cola. In addition, the Coca-
Cola Company has agreements with many of its supplier (mostly bottling
company) to exclusively provide by their services to Coca-Cola. Thus, it is
almost impossible for new comers to keep up with Coca-Cola and similar
competitors with recognized names in the business such as Pepsi. The Coca-
Cola success isn't something that has been achieved over night. Many years
has passed since John Pemberton created the secret formula for Coca-Cola in
1886. Who would have thought that after over a hundred years, his creation
would have this much impact in the world and turn Coca-Cola into a
worldwide recognized company.