Coca-cola company project report MBA 1st year


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Coca-cola company project report MBA 1st year

  1. 1. An Enterprise Desk Research report on Submitted in partial fulfillment of the requirements For the degree of Master of Business Administration To By Name of Students 12345- PRN NO. Gaziyani Md. Hasnain Md. Khalid Ansari Abu Swaleh Rafeeque Ah. Rahul O. Bhandari Khushboo Mutha Bhagyashree Mankar ---------------------------------------------------------------------------------------------------------------------------------------- Under the guidance of HON. HOD. PROF. MR. U.S. KASAR In the Year-2013-14 Through S.N.J.B‘s Late Sau. K.B.Jain College of Engineering, Neminagar, Tal- Chandwad, Dist-Nasik, (M.S) 1
  2. 2. DECLARATION BY THE STUDENT I hereby declare that this Project Report titled THE COCA-COLA COMPANY Submitted by me is based on actual work carried out by me under the guidance and Supervision of PROF. MR. U.S. KASAR any reference to work done by any other person Or institution or any material obtained from other sources have been duly cited and Referenced. It is further to state that this work is not submitted anywhere else for any Examination. Date: Name of Students: Signature of the Students 1- Gaziyani Md. Hasnain Md. Khalid 2- Ansari Abu Swaleh Rafeeque Ah. 3- Rahul O. Bhandari 4- Khushboo Mutha 5- Bhagyashree Mankar 2
  3. 3. ACKNOWLEDGEMENT We would like to thank the almighty for his constant grace showered on us and his increasing gift of knowledge and strength that has relentlessly prevailed our life through the entire project work. It was such an honor and privilege for us to collect information for the companies and share with the class. We would have not completed our project without their immense help and co-operation. Our sincere gratitude goes to Mr. and for guiding us and helping to collect data and constantly counseling us through their undertaking. We acknowledge our sincere thanks to Prof. Kasar Umesh S for his guidance that made us this project materialized. Finally, we are also thankful to our parents and friends for their encouragement and support. We would like to thank SNJB‘s KBJ COE dept of MBA and our principal Dr.V.J.Gond for the exposure and support provided during the project. Names of students 1- Gaziyani Md. Hasnain Md. Khalid 2- Abu Swaleh Rafeeque Ah. 3- Rahul O. Bhandari 4- Khushboo Mutha 5- Bhagyashree Mankar 3
  5. 5. Introduction of the Coca-Cola Company The Coca-Cola Company (Coca-Cola), the world‘s leading soft drink maker, operates in more than 200 countries and sells 400 brands of nonalcoholic beverages. Coca-Cola is also the most valuable brand in the world. Coca-Cola is a globally recognized successful company. The Coca-Cola was founded in May of 1886 and continues for more than a century through the times of war and peace, prosperity and depression and economic boom and bust. As late as the 1990s, Coca-Cola was one of the most respected companies in the world, building and known as a very successful management team. Since 1998, the company has been struggling with internal weaknesses and external threats. The purpose of this case study is to assess the current situation of Coca-Cola and the industry, evaluate the existing resources. 5
  7. 7. ENTERPRISE HISTORY AND BACKGROUND HISTORY 1894 … A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called CocaCola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. 1899 … The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States (specifically excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. 1900-1909 … Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. 1916 … Birth of the contour bottle Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a 7
  8. 8. distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most recognized icons in the world - even in the dark! 1920s … Bottling overtakes fountain sales As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. 1920s and 30s … International expansion Led by long-time Company leader Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. 1940s … Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. 1950s … Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type -- the traditional 6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960. 8
  9. 9. 1960s … New brands introduced Following Fanta® in the 1950s, Sprite®, Minute Maid®, Fresca® and TaB® joined brand CocaCola in the 1960s. Mr. Pibb® and Mello Yello® were added in the 1970s. The 1980s brought diet Coke® and Cherry Coke®, followed by POWERADE® and DASANI® in the 1990s. Today hundreds of other brands are offered to meet consumer preferences in local markets around the world. 1970s and 80s … Consolidation to serve customers As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved into international mega-chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. 1990s … New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century … The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as people seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows. 9
  10. 10. Mission and Objectives Mission Coca-Cola declares the purpose as a company and serves as the standard against actions and decisions:  To refresh the world…  To inspire moments of optimism and happiness…  To create value and make a difference. 10
  11. 11. Vision The vision of Coca-Cola is the framework for their guides of every aspect of its business. It is presented in 6Ps: 1. People: Be a great place to work where people are inspired to be the best they can be. 2. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. 3. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. 4. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. 5. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. 6. Productivity: Be a highly effective, lean and fast-moving organization. Board members: 11
  12. 12. 12
  13. 13. 13
  14. 14. Other Board of directors 14
  16. 16. ORGANISATION ORGANISATION STRUCTURE CORPORATE Muhtar Kent, Chairman and CEO Alexander Cummings, Chief Administrative Officer J. Alexander "Sandy" Douglas Jr., Global Chief Customer Service Officer 16
  17. 17. Gary Fayard, Chief Financial Officer Javier Goizueta, President, McDonald's Division Julie Hamilton, Executive Assistant to the Chairman and CEO Dominique Reiniche, Chairman, Europe Group Jose Octavio "Pacho" Reyes, Vice Chairman, The Coca-Cola Export Corporation Joseph Tripodi, Chief Marketing & Commercial Officer Clyde Tuggle, Chief Public Affairs & Communications Officer COCA-COLA AMERICAS Steve Cahillane, President, Coca-Cola Americas North America Group Katie Bayne, President and General Manager, North America Brands Glen Walter, President and Chief Operating Officer, CocaCola Refreshments Ben Garren, Legal John Guarino, President, Coca-Cola Refreshments Canada 17
  18. 18. Nancy Hunter, Executive Assistant to President – Coca-Cola Americas Carolyn Jackson, Human Resources Nicola Kettlitz, President, Canada Business Unit Robert Long, Quality & Technical Sonya Soutus, Public Affairs & Communications Duane Still, Finance Deryck van Rensburg, Venturing & Emerging Brands Brian Wynne, Strategy & Planning Latin America Group Brian Smith, President, Latin America Group Francisco Crespo, President, Mexico John Murphy, President, South Latin Alfredo Rivera, President, Latin Center Xiemar Zarazua, President, Brazil COCA-COLA INTERNATIONAL Ahmet Bozer, President, Coca-Cola International Eurasia & Africa Group Nathan Kalumbu, President, Eurasia & Africa Group 18
  19. 19. Kelvin Balogun, President, Central, East & West Africa Curt Ferguson, President, Middle East & North Africa Therese Gearhart, President, South Central Africa Galya Molinas, President, Turkey, Caucasus & Central Asia Zoran Vucinic, President, Russia, Ukraine & Belarus Europe Group James Quincey, President, Europe Group Nikos Koumettis, President, Central & Southern Europe Marcos de Quinto, President, Iberia Dan Sayre, President, Northwest Europe & Nordics Hendrik Steckhan, President, Germany Pacific Group Glenn Jordan, President, Pacific Group Manuel Arroyo, President, ASEAN Tim Brett, President, Japan David Brooks, President, Greater China & Korea Bruno Filipi, President, South Pacific Atul Singh, President, India & Southwest Asia Functional Leadership Harry Anderson, Finance Paul Fourie, Strategy & Planning Stevens Sainte-Rose, Human Resources BOTTLING INVESTMENTS GROUP (BIG) Irial Finan, President, BIG 19
  20. 20. Operational Leadership Rick Frazier, Commercial Products Supply Martin Jansen, China, Malaysia and Singapore T. "K.K." Krishnakumar, India Vamsi Mohan, Vietnam and Cambodia Paul Mulligan, Latin America and Japan Ulrik Nehammer, Germany Bill Schultz, Philippines Kevin Warren, Middle East, Africa and Russia Functional Leadership Sunil Ghatnekar, Finance William Hovis, Procurement Afzaal Malik, Public Affairs & Communications Mark Pitts, Executive Assistant Javier Polit, Information Technology Bjarne Tellmann, Legal Nick Wall, Human Resources Coca cola head quarters The Coca-Cola Headquarters is a campus in Midtown Atlanta, Georgia that is home to The Coca-Cola Company. The most visible building on the site is a 29-story, 403–foot (122.8 m) high One Coca-Cola Plaza. Located on the corner of North Avenue and Luckie Street, the building was completed in 1979. The architect was FABRAP and the designer Tom Pardue. The building and complex is located across the street from Georgia Institute of Technology and Midtown Atlanta. 20
  21. 21. In May 2011, to celebrate the 125th anniversary of Coca-Cola, a projection screen was made for the building that would display various Coke ads through the years and also transformed the building into a huge cup of ice which then was "filled" with Coke. In INDIA, its head office is situated in Gurgaon, Haryana 21
  22. 22. Certifications:- 2. OHSAS Certification 1. ISO Certifications • ISO 14001:2004 • ISO 22000:2005 OHSAS 18001:2007 ISO 9001:2008 • • 3. FSSC Certification • FSSC 22000 22
  23. 23. CHAPTER – 3 MARKETS 23
  24. 24. Markets Worldwide share and Geographical distribution 24
  25. 25. Product-wise Market share TARGET MARKET OF COCA-COLA • Coca-Cola takes every customer as target and potential who is thirsty. • All age groups are being targeted but the most potential is the age group from 18-25 that covers around 40% of total age segment. • AGE: The target market for the Coca-Cola is based on age. The audience of Coca-Coal is youngster or youth. • It has wide range of targeting. It ranges from the age of 15-25 and reaches to 40. 25
  26. 26. • Their targeting is not based gender but the results show that both genders like this product and use it. • GENDER: Coca-Cola segments INDIAN market with a percentage ratio of 58% females and 42% males. • Life style; busy life style( face shortage of time) and mobile generation. • Family; dependent on their family. • Occupation; students and family oriented people. • NATURE: Fun loving and entertainment loving. • SOCIO ECONOMIC STATUS: Upper lower and lower class MARKET SEGMENTATION OF COCA-COLA • Coca-Cola serves its products using mass market technique. Which obviously falls in undifferentiated marketing and undifferentiated marketing means no segmentation, but 26
  27. 27. there are minor factors on which we can say that the coke segments its products and then targets the customers somehow. • These factors are as follows. GEOGRAPHIC SEGMENTATION:  INTERNATIONALLY: Coke segments its products country wise and region wise.  The most important things is the taste and quality. It varies according to the taste and income level of the people in that country. I.e.: third world countries are given low quality and taste • CLIMATIC : In coke marketing, main idea is to serve it cold, so we that they focus on hot areas of the world. • i.e.: ASIA and Middle East etc and their sale increase in summer. • LOCALY : In INDIA the coke segments more in urban and suburban areas as compare to rural areas. DEMOGRAPHIC:  AGE : Coke segments the small children introducing tastes like vanilla, lime and cherry. They focus children from 4-12.  Coke specifically target younger than older.  FAMILY TYPE: Coke introduces its economy pack and that‘s how the focus family and groups.  INCOME : Coke segments different income levels by packing.  For small income people it has small returnable glass bottle.  For middle people it has small non-returnable bottle. 27
  28. 28.  For higher income people it has Coke Tin. PSYCHOGRAPHIC :  All psychographics variables the social class, lifestyle, occupation, level of education and personality Coke segments everyone.  But again its there packaging which is different for different consumers. BEHAVIORAL:  OCCASION: Coca-Cola segments different occasions which are celebrated in the country.  EID & DIWALI has become an international event identity of the culture of INDIA.  The credit for making celebrations available for almost everyone largely goes to CocaCola Company. COCA COLA WORLDWIDE PRODUCTS AND DESCRIPTION COCA-COLA is the most popular and biggest-selling soft drink in history, as well as the best-known brand in the world. On May 8, 2011, Coca-Cola celebrated its 125thanniversary. Created in 1886 in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage at Jacob's Pharmacy by mixing Coca-Cola syrup with carbonated water. Coca-Cola was patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold in every state and territory in the United States. In 1899, The Coca-Cola Company 28
  29. 29. began franchised bottling operations in the United States. Coca-Cola might owe its origins to the United States, but its popularity has made it truly universal. Today, you can find Coca-Cola in virtually every part of the world. SPRITE Introduced in 1961, Sprite is the world's leading lemon-lime flavored soft drink. Sprite is sold in more than 190 countries and ranks as the No. 3 soft drink worldwide, with a strong appeal to young people. Millions of people enjoy Sprite because of its crisp, clean taste that really quenches your thirst. But Sprite also has an honest, straightforward attitude that sets it apart from other soft drinks. Sprite encourages you to be true to who you are and to obey you. FANTA Introduced in 1940, Fanta is the second oldest brand of The CocaCola Company and our second largest brand outside the US. Fanta Orange is the leading flavor but almost every fruit grown is available as a Fanta flavor somewhere. Consumed more than 130 million times every day around the world, consumers love Fanta for its great, fruity taste. 29
  30. 30. DIET COKE Diet Coke, also known as Coca-Cola light, is a sugar- and calorie-free soft drink with a deliciously crisp taste that gives you a light boost in your busy day. It was first introduced in the United States on August 9, 1982, as the first new brand since 1886 to use the Coca-Cola Trademark. The brand created an entire new category and a new way of life. Today, Diet Coke/Coca-Cola light is one of the largest and most successful brands of The CocaCola Company, available in over 150 markets around the world. COCA-COLA ZERO zero was created with young adults in mind and offers great Coke taste, uplifting refreshment and zero sugar. 30
  31. 31. COCA-COLA LIGHT Diet Coke, also known as Coca-Cola light, is a sugar- and calorie-free soft drink with a deliciously crisp taste that gives you a light boost in your busy day. It was first introduced in the United States on August 9, 1982, as the first new brand since 1886 to use the Coca-Cola Trademark. The brand created an entire new category and a new way of life. Today, Diet Coke/Coca-Cola light is one of the largest and most successful brands of The CocaCola Company, available in over 150 markets around the world. FRESCA With a unique citrus taste, Fresca is a caffeine-free soft drink for discriminating adults. Fresca was introduced in the United States in 1966 as a calorie-free grapefruit-flavored drink. Its bubbly, crisp, light taste provides a flavorful beverage to consumers who want great citrus taste in a calorie-free soft drink. Fresca is sweetened with sugar in some parts of the world. 31
  32. 32. GLACÉAU VITAMIN WATER Glacéau vitamin water has always been a simple idea. Start with water. And then add bold, fruity flavors and just the right amount of sugar to make it delicious. Finally, top it off with a little extra nutrition. Genius and it never would‘ve happened if someone hadn‘t looked at a plain bottle of water and said, ―what if this was a little better?‖ making things a little better is what makes glacéau vitamin water great. Glacéau vitamin water, the pioneer of the nutrient-enhanced water beverage category, is available in over 26 countries. Grab a cold vitamin water and make your day a little better. Also available with no calories in many countries— glacéau vitamin water zero. DEL VALLE Del Valle Brand has its roots in Latin America and recently joined our ‗billion‘ dollar brand status within The Coca-Cola Company portfolio of brands. It has a diverse juice line up ranging from 100% juices and nectars to juice drinks and is available in different convenient packaging for the whole family. The brand is available in Mexico, Brazil, Colombia, Venezuela, Central America, and other markets in Latin America. 32
  33. 33. GLACÉAU SMARTWATER Glacéau smart water is inspired by the way mother nature makes water, known as the hydrologic cycle. We simulate this process by vapor distilling water, making every drop as pure as the very first drop of rain (before it passes through pollutants, of course). if that‘s not smart enough, we then one-up mother nature by adding in electrolytes for a clean crisp taste. if that sounds like genius, it is. Smart water is smart because it‘s made that way. MELLO YELLO The smooth citrus taste of Mello Yello has refreshed people's thirst for over two decades. Its unique taste and confident, in-control style sets it apart from other soft drinks. Mello Yello highlights the smooth choices in life - because when you drink Mello Yello, everything goes down easy. 33
  34. 34. FUZE FUZE® is reinventing the juice drink experience with its line of flavored beverages that blend together the goodness of diverse fruity flavors and nutritional ingredients. The new and improved FUZE is now available in twelve mouthwatering flavor varieties, each of which is an excellent source of antioxidant Vitamins A, C and E. FUZE TEA FUZE TEA is a new global tea brand from the Coca-Cola family that is a fusion of tea with fruit flavors and other natural ingredients. Created through a special process that ensures a delightful fusion of tea, fruit and other natural flavors, FUZE TEA delivers a fresh, contemporary expression of tea. 34
  35. 35. BURN With a potent combination of energizing ingredients, burn is designed to invigorate your senses and to give you the power to keep it going. Available in 76 markets throughout Europe, Africa and Latin America, burn is popular among adventurous trendsetters. HONEST TEA Honest Tea®, the nation's #1 organic bottled tea, delivers great-tasting, lower-calorie refreshment. Each tea is freshly brewed using organic tea leaves and a touch of organic cane sugar. Honest Ade® and Honest Kids®, organic caffeine-free thirst quenchers, are 50 calories or less per serving. Honest Tea is USDA Certified Organic, OU Kosher, Fair Trade Certified™ and is available at retailers nationwide. NOS Popular among auto enthusiasts, NOS is sold in 16-oz. cans and 22-oz. resealable bottles, with the latter bearing a resemblance to actual Nitrous Oxide canisters used in 35
  36. 36. automotive performance. The unique 22-oz. package won a National Association of Container Distributors packaging innovation award in 2007. NOS Energy Drink was developed in 2005 by FUZE Beverage and Holley Performance Products and was purchased by The CocaCola Company in 2007. ODWALLA With a vivacious medley of scrumptious beverages and bars, Odwalla artfully blends the best ingredients from nature with the latest leanings in nutrition. Odwalla products never contain any artificial colors, flavors, preservatives or genetically modified ingredients. The Odwalla line includes Super food(TM), smoothies, pure juices, proteins and energy. POWERADE ZERO Electrolytes without the calories. POWERADE ZERO™ is a greattasting electrolyte-enhanced sports and fitness drink. It combines electrolytes with fluids for hydration. It quenches thirst and replenishes minerals lost during sports or other intense activities. 36
  37. 37. COCA COLA’s OTHER INDIAN PRODUCTS Advertising and Marketing Campaign 37
  38. 38. POLAR BEAR DRINKING COCA-COLA COCA COLA INDIAN COMMERCIALS AD Commercial AMIR KHAN as a guide!  Message: Thanda bolay tu Coca Cola!  Focus: Diverse market segment captured by Coke. To squeeze on thirst, everyone needs a chilled drink. And to everyone regardless of the standard of lifestyle and status, a chilled drink means Coca Cola 38
  39. 39. CHAPTER – 4 FINANCIALS 39
  41. 41. Contd… 41
  42. 42. Servings per person 42
  43. 43. Global Workforce 43
  44. 44. Market Capitalization Investors Info: Stock Information 44
  45. 45. Stock Split History 45
  46. 46. CHAPTER – 5 GOVERNANCE 46
  47. 47. GOVERNANCE Scam Overview • The Indian government forced Coca-Cola out of the country in 1977. • The company returned in 1993 • Each bottling plants extracts up to 1.5m liters of water every day from the ground. • It takes nine liters of clean water to manufacture a liter of Coke. • In 2000 Coca-Cola opened a plant at Plachimada, a village in Kerala to produce 1.2m liters of coke every day. • The conditional license granted by the local Panchayat authorized the use of motorized pumps • But the company drilled more than six wells & illegally installed high-powered electric pumps to extract millions of liters of pure water. • The level of the water table fell from 45 to 150 meters below the surface. • The company started dumping waste outside causing a serious health hazard. • The court gave Coca-Cola a notice to cease water extraction • The theft of water was not only limited to kerala • Overexploitation of groundwater soon started in Kaladera 47
  48. 48. Kala Dera - Thirsting from Coca-Cola • Kala Dera is a large village outside the city of Jaipur. • Agriculture is the primary source of livelihood. • Coca-Cola started its bottling operations in Kala Dera in 2004, and within a year, the community started to notice a rapid decline in groundwater levels. 48
  49. 49. Unusable Well in Kala Dera Showing Depleted Water Level • For farmers, loss of groundwater translated directly into loss of income. • For many children it meant leaving schools to provide a much needed helping hand in household since the women had additional burdens. 49
  50. 50. Community response The community in Kala Dera organized itself to challenge the Coca-Cola Company for the worsening water conditions - through extraction and pollution - and demanded the closure of the Coca-Cola bottling plant. Company's Response The company, in usual fashion, denied any wrongdoing, blaming "outsiders" for the increasing local community opposition 50
  51. 51. The assessment noted that the plant's operations would continue to worsen water situation Coca-Cola's Response - Unethical and Dishonest • Coca-cola took seven month to respond • Coca-cola not respond to the concern raised • Unethical and dishonest campaign • Chosen to continue the operation • Continued in misery of thousand people 51
  52. 52. Coca-Cola should no longer utilize the overexploited groundwater resource in Kala Dera 1. Transport water from the nearest aquifer that may not be stressed. 2. Store water from low-stress seasons. 3. Relocate the plant to a water-surplus area. 4. Shut down this facility. The community in Kala Dera welcomed the recommendations and waited for company‘s response. COKE’S Corporate Social Responsibility - A Scam? The Coca-Cola steps up its corporate social responsibility announcing to the world that it is a ―green and socially responsible company.‖ --- But was not the case at kala dera The company announce its rainwater harvesting initiatives in India It was also announced that the company will become "water neutral" in India by 2009 52
  53. 53. Some serious concerns about Coca-Cola's claims on rainwater harvesting • The company announced that it has recharged five times the amount of water it has used. • When asked to back it up with numbers, Coca-Cola does not provide any. • Coca-Cola states that they "will install measuring devices that will verify the amount of water recharged." • If they do not have measuring devices installed to verify the amount of water recharged, how can they make a claim of recharging five times the water that they have extracted? • People across Rajasthan are well known in rainwater harvesting and have been harvesting rainwater long before Coca-Cola started. • Coca-Cola started rainwater harvesting to overcome response to the growing campaigns against its water mismanagement. • Coca-Cola was bluffing people with its rainwater harvesting. • The rainfall in the area is too low, and the amount of rainfalls fluctuates a lot contributing to 30 days of rains every year 53
  54. 54. • 80% of those rains come in just two or three days and hence rainwater harvesting is simply not efficient • Based on their rainwater harvesting initiatives Coca-Cola company has announced that they will become water neutral in India by 2009 • Coca- cola will recharge more water than the use from the groundwater resource. ---A BLUFF Coca-Cola Threatens Top Indian Photographer with Lawsuit a billboard by: Mr. Haksar • In 2005, Coca-Cola's Indian subsidiary, sent a letter to Mr. Haksar threatening him with serious legal actions unless the billboard was replaced 'unconditionally and immediately'. 54
  55. 55. • Coca-Cola would seek Indian Rupees 2 million (US$ 45,000) for "incalculable damage to the goodwill and reputation" of Coca-Cola, and also sought an 'unconditional apology in writing'. • Mr. Haksar said that he had no intentions of issuing any apology because he has not committed anything wrong. Negative Publicity The company received negative publicity in that past decade. In 2003, it was revealed that several midlevel employees had rigged a marketing test for Frozen Coke done three years earlier at Burger King Restaurants in Virginia. The scandal led to the departure of the head of Coke's fountain division, and the company issued an apology to Burger King and its franchisees and offered to pay them US$21 million. In the early 2004, the launch of the Dasani brand into the European market was cancelled when bottles in Britain were found to contain elevated levels of bromate, a substance that can cause cancer after long-term exposure. In India, during September 2006, Coca-Cola was accused by the Center for Science and Environment (CSE) of selling products containing pesticide residues. Coca-Cola products sold in and around the Indian national capital region contained a hazardous pesticide residue. These pesticides included chemicals which could cause cancers, damage the nervous and reproductive systems and reduce bone mineral density. Besides, Coca-Cola‘s products are always labeled as ―junk food‖. People criticize CocaCola‘s beverage contain too much sugar and high is calories. It is labeled as one of the important factors of causing serious obesity rate in developed countries. Such negative publicity could adversely impact the company‘s brand image and the demand for Coca-Cola products. This could also have an adverse impact on the company‘s growth prospects in the international markets. 55
  56. 56. REFERENCES • • • • • • • • • • • • • • • • • • 56