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  • 1. Co Cola Project Made by Sanket Morbiya Page 1 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, our 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 (a beverage fortified with micro-nutrients). 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 our 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 our beverages available to consumers across India. 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. We strive to ensure that our work environment is safe and inclusive and that there are plentiful opportunities for our 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, our 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, our operations catalysis growth in demand for products like glass, plastic, refrigeration, transportation, and Industrial and agricultural products. Our operations also lead to incremental growth for enterprises engaged in post-production activities like merchandising, marketing and sales. In addition, we share best practices and technological advancements with our suppliers, vendors and allied industries which often lead to improvement in the overall standards of quality across industries.
  • 2. Co Cola Project Made by Sanket Morbiya Page 2 The Coca-Cola Company has always placed high value on good citizenship. Our basic proposition entails that our Company's business should refresh the market; enrich the workplace; protect and preserve the environment; and strengthen the community. We leverage our unique strengths to actively support and respond to local needs -- be it the need for education, health, water or nutrition. We have used our distribution network for disaster relief, our marketing prowess to raise awareness on issues such as PET recycling, and our presence in communities to improve access to education and potable water. 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. About Coca Cola India The Brand Coca Cola has been New India‘s favorite for last 20 years. A market leader with strong hold of 51% over the Rs 50 billion soft drink industry in India. Coca Cola India boasts of growth rate twice that of the Indian GDP. Not only the numbers but the popularity and accepatibilty of the product cuts across all kinds of socioeconomic classification in India. The per capita consumption of Cold drinks in Inida is 7-8 bottles and cold drink segments collectively have a share of over 70% in the Indian beverage Industry Some facts about Coke India 1. Coca Cola India manufactures concentrate and beverage mixes under the wholly owned subsidiary of of The Coca-Cola Company namely Coca-Cola India Pvt Ltd, which re- entered Indian markets in 1993. 2. The company owns a bottling unit known as Hindustan Coca-Cola Beverages Pvt Ltd, which works in collaboration with 13 authorized bottling partners. 3. Coca Cola family today includes 7000 Indian distributors and 1.7 million retailers. 4. Nearly 2 billion INR has been invested in India operations since its entry in the Indian market. 5. Early acquisition of brands Thumbs up, Limca and Gold Spot gave Coca Cola India access to better infrastructure and market reach 6. Coca Cola India‘s Brand Umbrella included the following Coca-Cola Fanta Orange Limca Sprite, Thums Up, Burn Kinley Maaza Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh The Georgia Gold range of teas and coffees Vitingo (a beverage fortified with micro-nutrients
  • 3. Co Cola Project Made by Sanket Morbiya Page 3 1. Coca Cola India‘s biggest competition is from Pepsico India which hold about 48% of Industry market share. 2. In the fruit-based drinks category, Coca-Cola‘s Maaza is the leader, followed by Parle‘s Frooti and PepsiCo‘s Slice. 3. Around thirty thousand individuals are directly employed by Coca Cola India and another two Lac individuals get indirect employment assistance. Coca Cola India Advertising Strategy Two decades old Brand Coca Cola India advertising journey has been full of innovation and creativity. Coca Cola India made a consistent effort on its part to align its product with the Indian Culture and tradition. The earliest of the ad campaigns shows the brand positioning itself as a relaxing drink, fighting off the hot weather and humidity of Indian weathers. Since rival Pepsi had already established a strong brand image based on first mover advantage, Coca Cola adopted the dual strategy of Jingles and Celebrity endorsements. Coca Cola India Marketing Strategy
  • 4. Co Cola Project Made by Sanket Morbiya Page 4 Some of the popular coke Jingles in first decade of its existence were ‗Always The Real Thing‘, ‗Pee Le Coca-Cola‘, ‗Jo Chahe Ho Jaye…Coca-Cola Enjoy.‘[i] Moving on to year 2003 we had the fun loving ―Thanda Matlab Coca cola ad‖ where the iconic star Amir Khan was presented in 6 different looks, working on the simple philosophy of highlighting how Indian related to the brand as a cool relief. Word ―Thanda‖in India has different meanings like cool, cold or refreshing. If you meant refreshment you meant Coca Cola. This ad was instrumental in establishing Coca Cola as a brand in India. Thanda Matlab Coca Cola Ad Campaign Bollywood stars endorsing the brand include Karisma Kapoor, Aamir Khan, Hrithik Roshan and Aishwarya Rai among others. Post 2003, next 5 years witnessed ―Cola War‖ with rivals Pepsi and Coke is launching an aggressive marketing campaign against each other . In total Coca Cola roped in 15 celebrities against 8 of Pepsi. As much as the coca cola drinks enjoy popularity with the masses, the brand has been under serious criticism owing to the health issues associated with the consumption of Cola drinks . Health experts allegedly blame the cola manufacturers for promoting child obesity and other lifestyle diseases. Environmentalist has shunned the manufacturing practices of Cola giants as they claim that cola manufacturing plants cause water depletion and contamination. Thus to counter all negative complaints coke Post 2009, Coca Cola adopted the ―Global happiness‖ campaign. It experimented with different kinds of images of the year. It was projected as a beverage enjoyed by the entire family together through ad campaigns like ―Saath Khao Khushiyaan Badao‖.
  • 5. Co Cola Project Made by Sanket Morbiya Page 5 Saath Khao Khushiyaan Badao – Coca Cola India Marketing Campaign Coca Cola India campaign ―umeedon whale Dhoop, sunshine Wali Asha‖ ad launched in the year 2012 , sells hope for better tomorrow . The clearly gives a message of hope and growth and shows that every and any dream is achievable . Similarly the brand also roped in Sachin Tendulkar, as a ―happiness brand ambassador‖ to support various CSR initiatives the brand is undertaking . Coca Cola India Ad Campaign : Umeedon wala Dhoop, Sunshine wali Asha Besides Flagship coke ad campaign, the brand has focused upon positioning other umbrella brands i.e Thumbs Up , Limca , sprite and Fanta etc.
  • 6. Co Cola Project Made by Sanket Morbiya Page 6 Thumbs Up India has been branded as ‗Manly drink‗ in India since year 1993. Recently a brand roped in Salman Khan as the brand ambassador. Coca Cola India has in turn partnered with Salman Khan‘s Charitable foundation ―Being Human― and would be involved in various philanthropic initiates of the brands. Brand Fanta has been working on Zyada Fanta Zyada Fun‘ tagline and Bollywood actress Asin currently endorses the brand .The brand is projected as a fun youth brand and celebrities the energy of young individuals. The ads are usually humorous and perky. Over the years Fanta has occupied a strong market place and is identified as the ―The Fun Catalyst‖. Faced with slowdown threat, Coca-Cola & Pepsico experiment with strategies to push volumes growth By Ratna Bhushan, ET Bureau | 28 Jul, 2013, 12.02PM IST 31 comments |Post a Comment READ MORE ON » Tropicana Coconut | Sunday ET | PepsiCo | Pepsi Atom | Nimbooz Masala Soda | Monsoon | fizzy drinks But are the rains only to blame? There is no better time than now to ask if the slump is due to consumers turning away from fizzy drinks to healthier options. Editor's Pick Hiring by TCS, Infosys and Wipro falls by more than half in June quarter Nasscom hires PR & law firms on Immigration Bill 'IT to hire 1.20L' | Pvt insurers' hiring to rise 30% Samsung is world's most profitable handset firm Income disparity between rich & poor growing rapidly
  • 7. Co Cola Project Made by Sanket Morbiya Page 7 You know you have a problem if your sales trail even developing markets. You know you have a serious problem if your growth in volumes is barely 1% from a year ago. That's the case with Coca-Cola India whose growth in the critical April-June quarter came crashing down from 20% a year ago. It was the worst performance of the Indian unit of the world's largest beverage maker in five years. Arch rival PepsiCo has fared better than Coke but not better than its own performance in the previous year's corresponding period. Its volumes grew 11% in March-May but it compares badly with the strong double-digit growth of a year ago. And to think that the numbers for the most crucial month of the year — June — aren't yet out. A top official closely involved with PepsiCo operations said the company's growth in June has been soft as well, which may spoil the growth numbers for the next quarter. New Game Plan The India units of Coca-Cola and PepsiCo are critical bastions of growth for their American parents, but are now confronted with the threat of a slowdown in volumes. Executives of both companies have been forced to recast their strategy through a combination of price cuts, differential pricing (exactly the same product being sold at different prices in different cities), trade discounts, restructuring of distribution networks and stepping up capacities at bottling plants. Starting this month, all Coca-Cola's beverages in 200 ml bottles will be sold at a flat Rs 10, down from Rs 11-12, a top trade official told ET Magazine. "It's heavy discounting and at the cost of profitability. The company is pushing volumes almost as if in panic," he says. Coca-Cola will support the move with aggressive advertising. It is not hard to see why. Early and prolonged rains have softened demand. Add to that inflation and the cola story in the recent past has gone haywire, putting pressure on executives to deliver and fast.
  • 8. Co Cola Project Made by Sanket Morbiya Page 8 A veteran bottler said this quarter, which contributes 40% of the industry's annual sales, sets growth momentum for the rest of the year. "The industry hasn't seen such a bad June in years — this is the biggest month for the Rs 14,000-crore aerated drinks industry," he says. Gautham Mukkavilli, CEO at PepsiCo India (beverages), says a distribution step-up, especially for its newer products — Pepsi Atom, Tropicana Coconut blends and Nimbooz Masala Soda — is a key focus area. "We have had strong volume growth in March-May on the back of our IPL activation. While the early monsoon has resulted in softening of demand, we remain focused on developing the category by concentrating on increasing distribution of our products," he says. PepsiCo is also experimenting with different pack sizes in general grocery stores and consumer promotions (price-offs or bundling of products at discounts) in modern trade to drive consumption. "There's an urgency to drive volumes... Both firms are pushing different prices in different markets," said a trade insider. Though the big impact came from rains, Atul Singh, deputy president at Coca-Cola's Pacific group, said in an interview last week that the slowing consumer sentiment is as much a concern for his company."I can't control the GDP. But I can control the availability of products, equipment, training people, retailers," he said.
  • 9. Co Cola Project Made by Sanket Morbiya Page 9 Raining Discounts For the summer, Coca-Cola has been banking on pushing sales by selling at a discount to large retailers and slashing prices of brand Coke in 200-ml bottles to Rs 8. The company will also sell in different sizes. Currently, Coca-Cola is testing tetrapacks of 100 ml for juices at entry-level prices of Rs 6. But are the rains only to blame? There is no better time than now to ask if the slump is due to consumers turning away from fizzy drinks to healthier options like iced tea and juices. Says leading brand consultant Harish Bijoor: "In many markets, fizzy drinks with sugar have hit a glass ceiling... India seems to be getting there fast." Bijoor points out that, for one, most schools have stopped stocking aerated drinks in their canteens, as health awareness spreads. "Hydration choices aren't only about aerated drinks any more. Tea parlours, cafes selling smoothies and iced teas, frozen yogurt chains that offer consumers cooling choices on-the-move are options consumers have now," he adds. "Colas are also competing with packaged water which is how it is in the developed markets." Even so, there is no denying that rains have hurt. What is worse, there is the possibility of an extended monsoon. The meteorological department has predicted that rains are likely to last until September. India has already received its heaviest rainfall in 12 years in June. The cola majors are hoping the rains will recede soon. "We expect that the early monsoon will have a positive impact on rural demand. The upcoming festival season and increased rural demand will continue to drive consumer purchase," says Mukkavilli. Coca-Cola's Singh too is banking on the next two quarters, which include the festive season, to ride out of the slump. Coca Cola Market Positioning- Sustainable Community Model Coca Cola India projects itself as a brand which wants to grow along with the society. In its endeavor, the company has undertaken a variety of community development projects in rural as well as urban areas. One such example is Project Unnati. With a seed investment of $2 million, the project aims at training farmers and has has established about 100 demo farms in the pilot phase with plans to train 50,000 farmers over five years. Coca Cola India‘s Parvartan Program trains local Kirana store owners in good business practices. Similarly in another initiative, Coca cola has distributed Solar water cooler ―ekocool‖ to female retailers in Interior regions of Uttar Pradesh.
  • 10. Co Cola Project Made by Sanket Morbiya Page 10 According to group head Atul Singh, President and CEO, Coca-Cola India and South West Asia, the company calls it the golden triangle which involves the Government, civil society and the company, making it a win-win situation for all stakeholders. Hence the Marketing Journey of Coca Cola India was viewed around developing a highly respectable and trusted Brand In India . The focus of all marketing and branding initiatives of the brand over the year have been to build Consumer confidence and light friendly image . [i] http://articles.economictimes.indiatimes.com/2012-03-21/news/31220052_1_thanda-matlab-coca- cola-coca-cola-india-limca How Coca Cola did it in India The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself. Peter.F. Drucker Market leadership, turnover, customer satisfaction etc are few of the many indicators of success for a firm. The success is attributed if the product/service is technologically superior and of good quality or an effective marketing, promotion and distribution strategy is in place. Innovative marketing at its best can be understood from Coca-Cola India‘s venture into rural India in the year 2002, with an innovative promotion and marketing strategy that differentiated it from its competitors. Atul Singh, the company‘s president for India and South West Asia in an interview said ―We want every part of our portfolio to grow, so that any consumer, on any occasion, anywhere in India, makes a choice to drink a Coca-Cola product‖. Prior to 2002, for people in villages and small towns ‗Cola‘ signified ‗Pepsi-Cola‘ and Coca- Cola India was pretty much determined to break this jinx. However, the task was not easy and there were too many issues to be addressed beforehand. Poor rural infrastructure, consumption habits (preference of traditional cold beverages -lassi and Neembu pani), awareness of the product, mercurial electric supply and apprehension among shopkeepers added to Coca- Cola India‘s dilemma. It started its rural campaign with strategy focused around three A’s of marketing. Availability The centralized distribution system of transporting the product directly from the bottling plants to retailers, as used in urban market was futile for rural market which resulted in innovative ―Hub and spoke‖ distribution system. The stock was transported from the bottling plants to hubs and then from hubs to spokes (situated in small towns) and from spokes to retailers who catered to the demands in rural areas. A well designed marketing strategy with strong and efficient supply chain and logistics ensured Coca-Cola‘s presence with increase in coverage of 81,383 villages in 2001 to 1,58,342 villages in August 2003.
  • 11. Co Cola Project Made by Sanket Morbiya Page 11 Affordability A survey by Coca-Cola in 2001 revealed that 300 ml bottle priced at Rs 10/- was not popular with rural and semi-urban price sensitive customers. In reply to that, Coca-Cola launched 200 ml bottles (Chota Coke) priced at Rs 5/- . Coca-Cola achieved affordability by economies of scale. Then the next big task at hand was increasing brand awareness among the target segment in rural areas. Acceptability Coca-Cola backed up its pricing and distribution by extensive marketing in the mass media and outdoor advertising. Hoardings with painted name Coca-Cola on the compounds of the village residence, participation in annual haats and television commercials (TVCs) on Doordarshan were all set to mark Coke‘s presence in a big way. TV commercial for North Indian people referring Coca-Cola as ‗thanda‘ was flooded on television with Amir Khan as brand ambassador. Progressive advertising ensured easy brand recall and top of mind awareness among customers. Judith Evans pointed out, ―Travel where you will, anywhere in the world, and you will encounter Coca-Cola — on clothes, in signs, on packaging, in art — everywhere.‖ Market has encountered lot of innovation in terms of products, packaging, equipment handling, marketing etc, but the way in which Coca-Cola adopted its strategy for the Rural Indian market was remarkable and it definitely established Coca-Cola as life‘s one of the most delightful elixirs.
  • 12. Co Cola Project Made by Sanket Morbiya Page 12
  • 13. Co Cola Project Made by Sanket Morbiya Page 13 (Differentiation of brand logo from time to time) It was initially sold as a patent medicine for five cents, a glass at soda fountain in the United States.(because of the belief that carbonated water was good for the health and cure many more diseases also.) The transformation leads to a situation, where we believe and also enjoy's it as a drink for happiness.So dear friends, here we are discussing about the brand charisma, how well image advertisement works for the company called “Coca- Cola Company”. I think (Pepsi and Coke) they’ve done an excellent job (as usual) of appealing to a wide audience with their clean, sleek, modern looking packaging and logos.let's see the coke brand marketing in this post and "BRAND PEPSI" in the next continuing post. Coca cola was invented by John Pemberton.Coca-Cola got known to the world due to the marketing strategies of Asa Candler. Well I agree, some people say it as “American dream” in a bottle. It is very important here to understand the hidden strategic symbol making process, which portrayed as a symbol of spirit, vitality, creativity and optimism. It has been successful in expressing the American spirit and also the American pop culture in front of the world. Also strategically able to positioned itself as a cultural icon. it is not only spreads and sells the American culture, but takes different strategies to meet the varied taste preferences of consumers everywhere. If coca-cola only limited on the expression of American culture for its marketing, it’s impossible for it to become a brand that can be recognized in the multicultural world.
  • 14. Co Cola Project Made by Sanket Morbiya Page 14 Coca-cola logo is one of my top favorite logo, because of its classical nature both in terms of design and the taste of the product too. As per some reliable media research reports, it is one of the most recognized brand and logo all over the world. Yes, three core elements of its logo design made it possible to complete the visual identity system of coca cola brand. What’s there in the Name? Name of the brand: “Coca-Cola” (easy to speak and remember). Strategic standard color : associated color of the company: “ BRIGHT RED” Uniform color of employee in the company is “RED”, packaging with “RED” color; I think as a psychologist you too can understand the logic behind the chosen color of the company. From now onwards if you will see any red colored thing then coke will come to your mind definitely. Dynamic wavy pattern design of name, you can recognize the name in the china letter also. That’s how the brand recognition of name works here. Packaging expect: Its quality packaging is totally unique and eye catching. Whenever we see this brand’s new product in the market, the first thing could be a brief discussion about it. They do integrate the package with beautifully designed logos and cultural symbols and its chilled look make’s the first attraction. If you will see Chinese coke cans, it’s totally different with its look (they include young and sizzling Chinese starts on its can cover and Chinese traditional culture and event too). which is varied from market to market to get the country in mind.
  • 15. Co Cola Project Made by Sanket Morbiya Page 15 Advertising mania: Coca cola advertisement always dedicated to the openness of culture. Perfectly synchronized in such a manner that shows the best way to uplifting and enhancing your everyday moments of happiness. The first campaign of coca cola in Indian market was “JO CHAAHO HO JAAYE”. It was one of the best ads ever, appealed both at a product level as well as at an emotional level. The company don’t depend fully on the celebrity endorsement (with respect to other continents) but in India while keeping the Indian celebrity fan following in view, they have diverted their set character of global view to cope with this market. And successfully made it possible to grab the market share as well as the target segment. Recently they have campaigned with “OPEN HAPPINESS”, here coca cola seems to achieve at the emotional level as well as a mass appeal. This face to face analysis led to some interesting insights, one of the most successful brand in the world’s brand marketing, the key elements of success are Cross-cultural communication, localization and insistent of brand value of itself. The mode Coca-Cola took is a kind of Non-aggressive cultural integration and successfully conquered the cross-cultural marketing. We will continue the discussion in our next post with brand “PEPSI”. So dear reader’s, don’t forget to share your opinions and view on brand marketing with us. - See more at: http://shibakumarsethy.blogspot.in/2011/12/coca-cola-and-pepsi-image- advertisement.html#sthash.5CUGvs5H.dpuf
  • 16. Co Cola Project Made by Sanket Morbiya Page 16 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, our 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 (a beverage fortified with micro-nutrients). 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 our 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 our beverages available to consumers across India. 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. We strive to ensure that our work environment is safe and inclusive and that there are plentiful opportunities for our 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, our 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, our operations catalysis growth in demand for products like glass, plastic, refrigeration, transportation, and Industrial and agricultural products. Our operations also lead to incremental growth for enterprises engaged in post-production activities like merchandising, marketing and sales. In addition, we share best practices and technological advancements with our suppliers, vendors and allied industries which often lead to improvement in the overall standards of quality across industries.
  • 17. Co Cola Project Made by Sanket Morbiya Page 17 The Coca-Cola Company has always placed high value on good citizenship. Our basic proposition entails that our Company's business should refresh the market; enrich the workplace; protect and preserve the environment; and strengthen the community. We leverage our unique strengths to actively support and respond to local needs -- be it the need for education, health, water or nutrition. We have used our distribution network for disaster relief, our marketing prowess to raise awareness on issues such as PET recycling, and our presence in communities to improve access to education and potable water. 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. For more details on activities of the Coca- Cola India Foundation, please visit the website of the Coca-Cola India Foundation, www.anandana.org. 5 Lessons from Coca Cola’s New Content Marketing Strategy Coca Cola has been part of popular culture for over 100 years and has been called a ―Vision Brand―.
  • 18. Co Cola Project Made by Sanket Morbiya Page 18 Its marketing and communication is purposeful and connects with its audience in a way that makes it stand out from its competitors. Its mission is not about selling products but to create significant positive change in the world that makes the world a better place. Coca Cola‘s mission statement To refresh the world To inspire moments of optimism and happiness To create value and make a difference Recently they have realised that their marketing strategy that has worked well for them for decades needed to evolve and as such they are moving from ―Creative Excellence‖ to ―Content Excellence‖ Creative excellence has always been at the heart of Coca Cola‘s advertising and they have decided that content is now the key to marketing in the 21st century on a social web.
  • 19. Co Cola Project Made by Sanket Morbiya Page 19 Content for Coca Cola is is now the ―Matter‖ and ―Substance‖ of ―Brand Engagement‖ So what can we learn from Coca Cola‘s new marketing strategy? Lesson 1: Create Liquid Content The purpose of content excellence is to create ―Ideas‖ so contagious that they cannot be controlled this is what is called ―liquid content‖. On a social web people can easily share ideas, videos and photos on social networks such Facebook. So create content that begs to be shared whether that be an image, a video or an article. Lesson 2: Ensure your Content is Linked The next part of the equation is to ensure that these ideas create content that is innately relevant to The business objectives of your company The brand Your customer interests This is ―Linked‖ content…. Content that is relevant and connected to the companies goals and brand. Ensure that the content communicates your message that is congruent with your mission and values. Lesson 3: Create Conversations Coca Cola has realised that the consumer creates more stories and ideas than they do so the goal is provoke conversations and then ―Act‖ and ―React‖ to those conversations 365 days of the year. The new ―Distribution Technologies‖ of Twitter, YouTube and Facebook provide greater connectivity and consumer empowerment than ever before. Don‘t just publish but interact with your audience and tribe. Lesson 4. Move onto Dynamic Story Telling On traditional media in the past, story telling was static and a one way street. Television and newspapers shouted at you with no means of interaction.
  • 20. Co Cola Project Made by Sanket Morbiya Page 20 Coca Cola has come the realisation that to grow their business on the social web they need to move on from ―One Way Story Telling‖ to ―Dynamic Story Telling‖ This means you need to allow the story to evolve as you interact and converse with your customers. You need to converse with your customers in many media formats and social networks. Storytelling has moved on from static and synchronous to multifaceted, engaged and spreadable. Lesson 5: Be Brave and Creative with Your Content Creation Part of the new Coca Cola content strategy is applying a 70/20/10 Investment principle to creating ―Liquid content―. 70% of your content should be low risk. It pays the rent and is your bread and butter marketing (should be easy to do and only consumes 50% of your time) 20% of your content creation should innovate off what works. 10% of your content marketing is high risk ideas that will be tomorrows 70% or 20%…. be prepared to fail This provides a blueprint regarding moving on from just developing white papers, to trying some content that is more visual, courageous and engaging in web world that has embraced multimedia and interactive content. The 30 Second TV Ad is no Longer King Coca Cola has come to the conclusion that the world has moved on from the 30 second TV ad. So has the the Old Spice brand and many other businesses who are embracing social media as part of their marketing strategy. We need to move towards a genuine consumer collaboration model that builds buzz and adopts a more iterative approach to content creation. Learning how to fuel the conversations, act and interact has never been more important. Consumers ideas, creativity and conversations have been set free with the evolution of social networks, learning to leverage and wrangle those conversations to increase your brand visibility is now a vital part of your marketing. Image Advertising: The Advertising Strategies of Pepsi and Coca Cola in India
  • 21. Co Cola Project Made by Sanket Morbiya Page 21 Faculty Contributor: Seema Gupta, Professor Student Contributors: K Naganand and Avneesh Singh Narang In a crowded product market, as companies are increasingly falling short of ways to differentiate their products from those of the competitors, Image Advertising seems to be a way out. This article highlights the major tenets of Image Advertising, by looking at the advertising strategies adopted by PepsiCo and Coca Cola in India. The model developed herein seeks to understand, among many other things, the evolution of a brand, and its role as an integral part of a company’s brand portfolio. Contrary to popular belief, advertising is as much a science as it is an art. As the primary mode of communication between a company and its prospective customer, an advertisement must connect to the consumer, and create in his mind an attractive image of the brand. The average consumer gets lost in the vast sea of information, and is unable to differentiate one product from another. Notwithstanding the scientific inputs that go into designing an advertising campaign, some campaigns make history while others fail miserably. Why? Ads are no longer informative tools, but, as Poisez aptly points out, there has been a ―shift in attention away from the physical aspects and functional benefits of products to their symbolic associations, expressiveness‖. Marketing has ventured into the emotional, the behavioural, and the cognitive. Today, the primary objective of the ad is to create an image. The fierce competition between cola giants PepsiCo and The Coca Cola Company (henceforth, Coca Cola) - and the advertisement strategies adopted by them in India to establish their respective brand images – offers an interesting insight into Image Advertising. Brand Identity The first step in understanding Image Advertising is to understand the image being created, i.e. Brand Image. Brand Image is consumers‘ perception of the brand in question. This perception might actually be different from what the brand actually embodies – the Brand Identity. Advertising bridges the gap between Brand Image and Brand Image.
  • 22. Co Cola Project Made by Sanket Morbiya Page 22 Exhibit 1: Kapferer's Prism1 There are a number of tools available to explore the identity of a brand. One such tool is Kapferer‘s Prism (Exhibit 1). As shown in the exhibit above, there are many facets to a brand. Kapferer identifies six key characteristics that together define the brand: Physique – the physical attributes of the brand Personality – the personification of the brand Relationship – the relationship between the consumer and the brand Culture – the core values of the brand Reflection – the way consumers want to be perceived when using the brand Self-Image – the image that consumers have of themselves when associated with the brand A combination of these characteristics can be used to identify what the brand ultimately stands for. These exercises were performed on a few brands each from the stables of both PepsiCo and Coca Cola; Exhibit 2 depicts the results of these exercises.
  • 23. Co Cola Project Made by Sanket Morbiya Page 23 Exhibit 2:Brand Proposition Identity to Image – Evolution of Strategies A closer look at the brand identities of each of the brands helps assess how successful their advertising campaigns have been in creating a brand image in tune with it, while being sensitive to the value system of the target audience. PepsiCo’s Campaign The analysis of Pepsi, 7 UP and Mountain Dew from the portfolio of PepsiCo puts forth some interesting aspects about the evolution of these brands. Pepsi was one of the first products to Indian markets after the economic reforms of 1991. Pepsi Pepsi began with the Yehi hai Right Choice Baby campaign, which has been one of the most memorable campaigns of the brand, featuring celebrity endorsers such as Shah Rukh Khan among others. The focus, as is clearly evident, is on the product with the youth as its target segment. Yeh Dil Mange More and Yeh Pyaas Hai Badi were some of the later campaigns. Yeh Dil Mange More campaign was again a great success, having balanced the emotional as well as the functional appeal of the product. Featuring Sachin Tendulkar and many other leading stars at that point of time, this was also one of the longest campaigns carried out by Pepsi. The company however failed to maintain the trend and leverage it. Instead of moving on to a complete emotional appeal platform, the company decided on a product based promotion campaign. Though there is still some amount of emotional appeal to its campaigns, the principal focus is on the product - it being a preferred thirst quencher. 7 UP In its early days, 7 UP inherited the global Fido-Dido campaign for promotion in India as well. However, with changing times and a contextual difference in India, a much more focused campaign was required. This led to the Keep It Cool campaign, which was targeted primarily at the youth and the teenager segment. Hence the appeal was at a more subtle, emotional level,
  • 24. Co Cola Project Made by Sanket Morbiya Page 24 which was meant to convey a potential lifestyle statement. The recent campaign of Bheja Fry essentially leverages on the same emotional appeal where the Keep It Cool campaign has been somewhat tweaked to have a local appeal. Mountain Dew Mountain Dew is the latest entrant in the product portfolio. This product too has the appeal of being the drink of a daredevil or the No Fear personality. The campaigns launched include Do the Dew and Dar Ke Aagey Jeet Hai. The initial campaign was unclear in terms of its appeal and the target segment, as a result of which the brand suffered some jolts in the beginning. However, the latest campaign captures the No Fear or the Macho Man image. In this sense, the brand directly competes with Thums Up from the Coca Cola Stable 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. Coca Cola 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 earlier. 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 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
  • 25. Co Cola Project Made by Sanket Morbiya Page 25 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. Proposed Framework This analysis brought to light the roles played by each brand in the company‘s overall advertising strategy. Not every brand took the centre-stage: some were the core brands, while others were used as defensive shields and offensive attackers to fight off competition. The following framework helps classify different brands based on the roles each of them plays: The Core Brand – the flagship brand of the company The Cover Brand – acts as a cushion to the core brand; soaks up competition The Stand-Alone Brand – neither core nor cover; independent Brand Portfolio Analysis The brands in the portfolio of Pepsi and Coca Cola play an important role in terms of the overall impact they have on brand recall and consumer loyalty. The framework developed herein attempts to identify the importance of each brand in the portfolio and the role it plays. In the case of The Coca Cola Company, Coca Cola is the core brand or the flagship brand. The focus, therefore, is on capturing the maximum value that the brand can generate. In this case, Sprite plays the role of a cover brand (Exhibit 3). Any spoof or threat on Coca Cola is countered by Sprite. However, off late, Sprite is moving up the ladder to become a core brand in the portfolio. The importance of a cover brand is that it allows for maintaining a planned advertising strategy. This builds brand value and creates no confusion about brand proposition. Exhibit 3: Brand Roles
  • 26. Co Cola Project Made by Sanket Morbiya Page 26 In case of PepsiCo, Pepsi is the core brand or the flagship brand. However, Mountain Dew and 7 UP have played the role of standalone brands. Therefore, Pepsi has to constantly respond to spoofs and threats from other brands by tweaking or changing its planned advertising strategy. This strategy may lead to confusion in minds of the consumer about the brand proposition. Such a situation can be critical with regard to the connection a brand establishes with its target consumer segment. Recent trend suggests at Mountain Dew taking up the role of a cover brand in the PepsiCo brand portfolio. Conclusion This analysis led to some interesting insights. For a start, the image of the brand must be consistent not only with its identity, but with the value system of the target segment. It is, in fact, the complexity of the value system of the target segment of Pepsi and Coca Cola that allows for such a contrast in advertising styles. Furthermore, the race for prime position involves a well thought out strategy with clear cut roles for each of the brands in a portfolio. Advertising is indeed both an art and a science. The shift from information to image displays the rich potential of the advertising space. The exhilarating pace of evolution from the simple creative to the strategic takes your breath away. Definitely not for the faint hearted! Keywords Marketing, Consumer Goods, Advertising, Pepsi, Coca Cola Authors Seema Gupta is a Professor in the Marketing Area at IIM Bangalore. She holds a Ph.D. from Mohanlal Sukhadia University, Udaipur, India. She can be reached at seemag@iimb.ernet.in K Naganand (PGP 2008-10) holds a B. Tech. from National Institute of Technology, Karnataka, Surathkal, and can be reached at k.naganand08@iimb.ernet.in Avneesh Singh Narang (PGP 2008-10) holds a B. A. (Hons) Degree in Economics from St. Stephen‘s College, Delhi, and can be reached at avneesh.snarang08@iimb.ernet.in References 1 Kapferer, J.-N. (1992), Strategic Brand Management, Free Press, New York, NY, pp38 1 King, S. (1991), " Brand-building in the 1990s", Journal of Consumer Marketing, Vol. 8 No.4, pp.43-52; Parker, K. (1991), " Sponsorship – the research contribution", European Journal of Marketing, Vol. 25 No.11 , pp.22-30; Wells, B. (1989), " Branding, (part II), order out of chaos", Marketing and Media Decisions, Vol. 24 No.6, pp. 99-100 1 Aaker, Batra and Myers, ―Advertising Management‖, Fifth Edition, Prentice Hall of India
  • 27. Co Cola Project Made by Sanket Morbiya Page 27 1 Baker, Erdogan and Tagg, 2001, ―Selecting Celebrity Endorsers: The Practitioner‘s Perspective‖, Journal of Advertising Research, Vol. 41, No. 3, pp 39 -58 • Aim: Be known by the U.S. society, specific to men and woman, not children neither young people. • Marketing and Advertising Strategies • Marketing Mix • Product: Coca Cola • Price: 0.05 in 1900 • Place: The United States • Promotion: • Timing: 5 Years Strengths • The products that this company produces are hard to copy • These products have added value • The quality of the products reaches highest standards • Is a leader in the industry • Is known in all the world Weaknesses • The marketing is a key for success for them • The main competitors are trying to beat them with massive advertising campaigns Opportunities • With its promotions, they could sell more cokes than any other companies • They sell millions coke per day in the whole world, and they could reach consumers more easily. Threats
  • 28. Co Cola Project Made by Sanket Morbiya Page 28 • They want to beat other competitors • They need to improve its marketing strategies • They have to improve their promotions • Serve customers with creativity and consistency to generate growth across all channels
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