coca-cola's war to sustain in india

1. The Battle for Market Share: Coca-
Cola’s Plan to Win Back India
When the CEO of the Coca-Cola Company visited India in 2017, he set
ambitious goals for Coca-Cola India: become the third-largest market for
Coca-Cola by 2020, reduce sugar content, and launch more juice-based
drinks and water. With a wave of technological and lifestyle changes among
Indian consumers, Coca-Cola India needs to cater to the increasing demand
for healthier carbonated beverages.

2. Brief Introduction to Coca Cola Company
• Headquarters : USA Atlanta, Georgia.
• Portfolio of 500 brands and a footprint in over 200 countries.
• Over 21 of coca cola brands were valued at US $1 billion.
• Coke was invented at 1886 which is company’s best known product
• Brand value of coke was $56.4 billion
• Listed fifth in world’s most well known brand in 2017(Forbes).
• Main competitor in 2017 was Pepsi Co. inc.
• Its marketing strategy evolved over the years
• Tagline changed many times from ”Delicious and refreshing” in 1886 to “Test the Feeling” in 2016.

3. Coca-cola in Indian Market
• Entered in 1950 exited in 1970 and re-entered in 1993.
• operated both franchisee-licienseed and company owned bottling operation model.
• Three pronged system :
-Coca-cola India,
-Hindustan Coca Cola Beverages Pvt Ltd and
-franchise bottling partners.
• Had over 2.6 million outlet to sell its product and 7000 distribution
• The parent company had committed to invest up to $7 Billion in India by 2020.

4. Contd….
• Maintained a commanding lead with a market share of 32.9 percent in 2016 compared to 37.6 percent
in 2012, well ahead of its main rivals.
• Got recommendation to work on reformulations to lower the sugar content in its beverages as well as
increase emphasis on the sale of its smaller-sized drinks to facilitate less sugar consumption in line with
the parent company's initiatives to do so internationally.
.

5. The Indian Soft Drink Market
• The Indian non alcoholic beverage had a huge customer base(2017).
• This market—which was expected to grow up to 3.5 times by 2020
• was led by hot beverages; tea and coffee accounted for 83 per cent of the market share.
• Almost half the soft drink market in India was dominated by carbonated drinks, juices and milk-based
beverages were growing rapidly.
• Juices and juice-based drinks growing had a compound annual growth rate of 28 percent from 2010 to
2015.
• The 2016 sales figures revealed that juices and fruit drinks had pushed Pepsi and Coke out of the top five
best-selling brands in India.
• Juice and cold-pressed juice businesses like Paper Boat saw fresh rounds of investment as a result of the
enormous growth potential of juice and health drinks.
• Local juice producers like Manpasand Beverages had also become very successful, generating revenues
of Rs 5.5 billion in 2016.

6. CEO’s Ambition
• CEO wanted the Indian branch of the company, Coca-Cola India Private Limited (Coca-Cola India), to
achieve many ambitious goals: become the third-largest market for Coca-Cola by 2020; split the market
in half for sparkling (carbonated) and non-sparkling (non-carbonated) drinks by 2025 and so on .
• The numerous announcements made by or concerning Coca-Cola India prompted a number of inquiries.

7. Coca-Cola's Recipe for Success In India’s
prevailing market
Affordability
Offered lower-priced products
to make their beverages more
accessible to a wider range of
people.
Acceptability
Innovative Marketing focused on
Emotional Connection and
positive Experience
Availability
Hub-and-Spoke distribution
model and a strong network of
bottlers and channel partners,
reaching even remote areas.
.

8. Shifting Consumer Habits in India
1
Rapid Urbanization
More people now live in urban
areas, leading to changes in
Indian consumers' buying habits.
2
Increased Empowerment of
Women
More women are now in the
workforce and have higher
spending power.
3
New Lifestyle Trends
Changing household structures
have led to increased emphasis on
healthier food and beverage
options.
4
Greater Internet Penetration
Internet penetration has enabled
greater awareness about well-
being and health.

9. Major Competitors
PEPSI CO. INDIA HOLDINGS PVT LTD PARLE AGRO PRIVATE LIMITED

10. Competitors
HECTOR BEVERAGES PVT LTD DABUR INDIA LIMITED

11. PEPSI CO. INDIA HOLDINGS PVT LTD
➔ Present since 1989
➔ Established as a Food and Beverage Company
➔ Diverse portfolio over 22 brands
➔ Numerous Manufacturing Facilities
➔ Health and Nutrition Focused
➔ Collaboration for innovative products
➔ Caters to the evolving need of consumers

12. PARLE AGRO PRIVATE LIMITED
➔ Founded in 1984 as Subsidiary of Parle Products
➔ Aimed to diversify into beverage segments
➔ Diverse products
➔ Good Market Presence with wide distribution and variety of packaging
➔ Innovative
➔ Environmental and Social Initiatives

13. Hector Beverages Private Limited
➔ Founded by ex employees of Coca-Cola in 2009
➔ Known for its flagship brand paper boat a non-carbonated packaged drink
➔ Focused on health and natural ingredients
➔ Significant growth since its inception
➔ Entered food segment for product diversification
➔ Prominent player in the segment

14. Dabur India Limited
➔ Present Since 1884 in Indian Market
➔ Fruit juices under Real brand and Sparkling fruit beverages under Real Volo Brand
➔ Strong Market Presence i.e 19% market share as FMCG company and 56% in packaged fruit juice
market
➔ 25 variants of fruit juices under Real brand
➔ Ethnic Beverage Segment is tapped by launching Hajmola Yoodley.
➔ Demonstrated its ability to adapt to changing consumer preferences and capitalize on emerging
trends.

15. Challenges faced by Coca-Cola India
New Competitors
As the demand for
healthier carbonated
beverages grows, Coca-
Cola India will have to
face competition from new
entrants offering similar
products.
Adapting to Indian
Culture/
Coca-Cola India must also find
innovative ways to adapt to local
culture, preferences, and barriers.
Risks in Shifting Focus
Moving away from its
core competency carries
significant risks for
Coca-Cola India.
sustainability

16. Coca Cola’s way forward
New Product Range
Coca-Cola India plans to
enter the frozen desserts
category with its new
Minute Maid product range
containing real fruit
chunks.
Fruit-based
Products
The company intends to
invest $1.6 billion in
developing an agriculture-
focused ecosystem and
introduce fruit-based
beverages over the next
five years.
3 Total Beverage Solutions
Instead of focusing only on carbonated and fruit-based
drinks, Coca-Cola India is now shifting towards "total
beverage" solutions.
2
1

17. Coca-Cola India's Impact on Society
Employment
Coca-Cola India provides large-
scale employment in
underdeveloped sectors,
employing around 2,500 direct
and 150,000 indirect employees.
Market Share
With over 2.6 million outlets
and 7,000 distributors, Coca-
Cola India holds a significant
share of the Indian beverage
market.
Culture
Coca-Cola India has become
an integral part of popular
Indian culture and lifestyle
trends.

18. Exhibit 1:
Exhibit Analysis

19. Exhibit 2:
➔ Coca Cola’s tagline (1816AD- 2016 AD)
Exhibit 3:
➔ The market share of indian soft drink by brand ( 2013- 2016)

20. Exhibit 4

21. The Future of India's Beverage Industry
1 Diversification
Beyond carbonated and fruit-based drinks,
the Indian beverage industry is expanding
into tea, coffee, milk, and coconut-based
drinks.
2
Health and Well-Being
With more awareness of health and well- being,
consumers are demanding healthier and functional
beverages with natural
ingredients.
3 New Technologies
Advancements in packaging, processing,
and preservation technologies are driving
innovation in the beverage industry.

22. Sticking to core competency
● Expanding within existing category
● Customer centricity (reinvent/develop product according to
preference of customer)
- Less sugary drinks using natural sweeteners such as stevia
- Examples: Coca cola zero ,diet coke
● Advantage;:
-Leverage brand equity
-Synergies and economies of scale ( cost minimization using existing plant &
machinery) - Advantage
-Capitalizing on customer loyalty
● Acquisition & partnership

23. Drawback/ Risk
● The risk of losing customer share.
● Decreased Revenue: Potential loss of revenue due to declining market
share.
● Missed Market Growth Opportunities: Failure to capture and capitalize on
market growth potential.
● Market changes and disruption.
● Competitive threats.

24. Shifting from core competency
● Entering a new category of beverages
-Diversification/ Brand extension
-Market Growth opportunities
-Customer Centricity( evolving customer preferences)
-Competitive Advantage
-Innovation & Creativity
● Acquisition & partnership

25. Drawback/Risk
Innovation , technology , expertise ko need chahiyo
Market saturation and competition
Loss on Brand Identitiy
Financial assessment and risk/ Resource allocation
CUSTOMER PERCEPTION

26. Decision making criteria
SWOT Analysis
Strengths
- Strong market existence
- High markets penetration
- Intellectual Property Rights
- Strong relationship with Existing Suppliers and Distributors
- Existing vendors and distributors
- Efficient
- A product differentiation tapping core as the new product, Ginger Ale; ginger based carbonated
drink.
Weakness
- Inventory Management
- Low ROI
- Track record on environment and sustainability is not so efficient
- Customer Dissatisfaction

27. Opportunities
- Increase in disposable income of customers
- Increasing standardization
- A leap towards sustainable approach.
- E-Commerce and Social Media Oriented Business Models.
Threats
- New entrants and huge competition
- Infrastructure development and financial risks.
- Increasing bargaining power of the consumers.
- A look away from the niche can led find another niche inducing difficulties in product establishment.

28. Rich Heritage
Brand Identity
Customer
loyalty
Brand
Integrity
Trademark
Market
Dominance
Leveraging existing
customer base
High extension and
growth
possibilities.
A better
analytical insights.
Mission and
Vision
Focus on long
term sustainable
growth.
Resource
allocation :
Maximising profit
and ensuring
less risk.
Upper Hand
Established
Supply Chain
and Distribution.
Well equipped
techniques and
skilled force.
Experimentals
products and
diversification.
Tilted towards the position of Core Competency
Decision Making Factors

29. What can Coke adapt to?
Coca-Cola’s strategic approach to the indian market
- Acquisition of local brands as Parley-bisleri, Thump Ups, Limca leading market insights.
- Introduction of new product with less risk.
- Can expand consumer market with a penetrated market.
- Can emphasis on reformulations, juice distributions, ethnic beverages. (Carbonated health drinks,
energy drinks, fruit flavored soda etc. Ginger Ale, Kinley.)
- Opt for lot of experiments in product sector..
- High return on investment, effective existing supply chain management.
- Focus on innovation, technology and product quality.

30. Leading Examples; who sticked to their core.
Ferrari has always sticked
to its core regarding the
speed and manufacturing
of high performance speed
cars. It has always been
true to identity despite the
market trends and
fluctuation in demand.
Nike stayed true to its
competency while
regularly producing sports
footwear and apparel. By
continuous partnerships
with athletes and other
innovative measures.
McDonald’s have always
sticked to its fast food
core, providing quick
service to the customers
and today’s world
greatest fast food chain.

31. Companies that skyrocketed after changing core competencies
Amazon was originally a
online bookstore, who
changed it’s core competency
turning itself into global e-
commerce giant.
Apple became huge giant
tech after they shifted into
digital products like
ipods, iphones, ipad, mac
etc. before they used to
manufacture personalized
computers.
Netflix was originally DVD-
rental centre

32. Conclusion
- The aim of the company is to be total beverage company as leader in India.
- Gaining back the huge market share, that is been degrading, willing to be all way beverage brand.
- Evolving consumer’s demand that is to be tapped.
- The way forward requires the adoption of sustainability and environmental consciousness approach
as future goal orientation.
- A look towards the future beverage industry, especially carbonated beverages; tapping Rural market
first.

33. - Leveraging what do they best which will increase their customer loyalty and increased productivity.
- Shift from core will lead into more risk assessment, as market threat, financial threat, quality of the
product and implementing strategy the new market.
- Also, Focusing on nutritional and health aspects, to go head to head with Competitors and Substitute
products.
- Realizing the importance of innovation and product diversification, keeping the carbonated form as
core and producing the beverage as ginger ale, carbonated iced peach tea, carbonated flavored fruits
juice.