Transcript of "Marketing Presentation on Coca Cola "
Marketing Plan Presented By: Aditya Kale Aniruddha Patil Gourav Kapoor Narendra Kashikar Siddhartha Kamat
Contents:i. Brief Introduction of Marketing Plan i. Objectives of Marketing Planii. Brief Introduction of the Companyiii. Executive Summaryiv. Current Market Situationv. Objectives of the Companyvi. SWOT Analysisvii. Marketing Strategiesviii. Marketing Segmentationix. Budgetsx. Issues and Initiatives in Indiaxi. Referencesxii. Advertisement Clips
Introduction of Marketing Plan•A part of business plan•Most marketing plans cover one year•General to specific : Vision to mission & thendown to the individual action plans•The most important output of marketing process.
Objectives of Marketing Plan•To set realistic & unambiguous goals.•To develop an action plan for achieving thesegoals.•To align the marketing activities with corporatemission.•To respond to rapidly changing market conditions.•To quantify the outcome of each activity.
Introduction of the Company•Founded in 1892 after the formula was invented byPharmacist John S. Pemberton•Headquartered at Atlanta, Georgia-USA•Currently offers more than 500 brands in over 200 countries•Provides 1.7 billion servings a day•Of this Coca Cola(Coke) accounts for nearly 78%•Sales distributed as follows: 42%(USA), 38%(Mexico, India,Brazil, Japan and China), 20%(Rest of the World)•Financial Details : Revenue US$ 35.119 billion Operating income US$ 8.449 billion Net income US$ 11.809 billion Total assets US$ 72.921 billion Total equity US$ 31.317 billion•Employees: 1,39,600
Executive Summary•Doubling the revenues by 2020•Making a positive difference in the communities•Project the company as a responsible corporate citizen a) Sustainable water use & packaging b) Climate protection•Lift the corporate brand image•Connect with global middle class by creating new productsand packaging formats for all lifestyles and occasions.
Fun Fact 1:3.1% of all beverages consumedaround the world are Coca-Cola productsOf the 55 billion servings of all kinds of beverages drunk eachday (other than water), 1.7 billion are Coca-Cola
Objectives of the CompanyMission:•To Refresh the World... In body, mind, and spirit•To Inspire Moments of Optimism…Through our brands and ouractions•To Create Value and Make a Difference... Everywhere weengage.Vision for 2020 Sustainable Growth:•PROFIT: Maximizing return to shareowners while beingmindful of our overall responsibilities.•PEOPLE: Being a great place to work where people are inspiredto be the best they can be.•PORTFOLIO: Bringing to the world a portfolio of beveragebrands that anticipate and satisfy peoples’ Desires and needs.•PARTNERS: Nurturing a winning network of partners andbuilding mutual loyalty.•PLANET: Being a responsible global citizen that makes adifference
Current Market Situation in India•The carbonated drinks market is close to Rs 6,000 crore($1.36 billion) with growth at 10-12 per cent•The fruit juices and fruit-based drinks market is close to Rs5,000 crore ($1.13 billion), growing at 35-40 per cent annually.•Within the hot beverages category, India is the largestproducer of tea and accounts for 28 per cent of the globalproduction at 956 million kilograms annually.•The total turnover of the tea industry is over Rs 8,000 crore ($1.8 billion), growing at a rate of 1.2 per cent annually.•India is the world’s 5th largest producer of coffee, accountingfor 4 per cent of the world’s production.•In India, Coca Cola and Pepsi hold a market share of 95% ofwhich coca cola has 60.8% the rest belongs to Pepsi.Main Indian Competitors:Pepsi Co.-Pepsi, Slice, Dew, Mirinda, Tropicana Juice, LiptonTeaNestlé-Nestea and other Milk Related Products.Dabur-Real Fruit juice
Products To Offer in Current Market SituationAerated Drinks Coca Cola Diet Coke Sprite Thums up Maaza Limca Kinley SodaJuices Minute MaidIced Tea NesteaWater Kinley WaterTonic Water SchweppsEnergy Drink BurnCanned Coffee Georgia
Fun Fact 2:Coke makes so many differentbeverages that if you drank one per day, it wouldtake you over 9 years to try them all.Coca-Cola has a product portfolio of more than 3,500beverages (and 500 brands), spanning from sodas to energydrinks to soya-based drinks
Fun Fact 3:Coca-Colas $35.1 billion inrevenue makes it the 84th largest economy in theworld, just ahead of Costa Rica
Fun Fact 4:The Coca-Cola brand is worth anestimated $74 billion: more than Budweiser,Pepsi, Starbucks and Red Bull combined
Fun Fact 5: If every drop of Coke ever producedwere put in 8-ounce bottles and laid end-to-end,they would reach the moon and back over 2,000times
Fun Fact 6:If you stacked up Cokes 2.8 millionvending machines, they would take up 150.2million cubic feet of space -- the size of 4 EmpireState Buildings
Implementation-Brand LocalizationStrategyIndia A(4%):“Life Ho To Aisi”•This segment sought social bonding as a need and respondedto inspirational messages, celebrating the benefits of theirincreasing social and economic freedoms.•India B(96%):“Thanda Matlab Coca-Cola”•Use of Idiomatic expressions and Local language•Accessibility Campaign•Distribution Infrastructure: Retail Outlets Doubled in 2 yrs.(From 80,000 to 160,000)•Doubled the Market Penetration in rural areas (13%to 26%)•Campaign of the Year(2003), Advertiser of the Year(2003)
Fun Fact 9:Coca-Cola spends more money onadvertising than Microsoft and Apple combinedCoca-Cola advertising budget (2010): $2.9 billionMicrosoft advertising budget (2010): $1.6 billionApple advertising budget (2010): $691 million
Implementation through Advertising:Brand Ambassadors:Coca Cola: Imran Khan(Endorsement Fee:3.35 cr) Aamir Khan(Endorsement Fee:10 cr) Virendar SehwagThums up-Akshay Kumar(Endorsement Fee: 5 cr)Fanta-Genelia D’souza (Fee: 1.13 cr)Sprite-Shahrukh KhanSponsorships:First Commercial Sponsor of Olympic Games in 1928Fifa World Cup(Since 1978)Major League Baseball, NBA, NHL.1996 Cricket World CupIPL: Delhi DaredevilsEnglish Football League(Coca Cola Championship, League 1, 2)
Implementation through Advertising:Mass Media:Hollywood Movies : Borat, Click, Failure to Launch, GloryRoad, Gridiron Gang, Hostel, Mission: Impossible III, Silent Hill,The Covenant, The DepartedBollywood Movies: Kaho Naa Pyar Hai, Rang De Basanti,Taal, Shree 420, Kuch Naa Kaho, Bobby.Campaigns & Collaborations:• Domino’s• Coke Studio with MTV• Diwali Campaign: “Come Home on Deepawali”• “Brrrrrr” Campaign
BudgetsCoca Cola has an global annual advertising budget of$1.6 billion a year.2011-12 Q1 Highlights(Coca Cola India):Total Sales:$356.9 millionOperating Income:$19.2millionNet Profits:$6.4millionEarning per Share:$1.69Current Trading Price:$63.70Return on Equity:30.9%Return on Assets:15.1%Return on Invested Capital:25.1%Gross Profit Margin:68.4%
Issues and Initiatives in India•Groundwater Depletion – The Issue: Several droughts in a number of villages in Kerala and Uttar Pradesh where the plants operated were linked as a possible cause due to the large usage of water for production. – The Initiatives: • Reduce • Recycle • Replenish – The Results: • Water usage ratio reduced by more than 25% from 2004-2009 • Waste water treated to a level to support aquatic life • Rainwater harvesting potential equal to 93% of ground water used.
Issues and Initiatives in India•The Pesticide Controversy: – The Issue: in 2006, CSE established that Coke had 25 times the pesticide residue than found in 2003 which posed health risks, which also resulted in a 11% drop in sales. – The Initiative via Advertisements.