coca-cola

2. Breif Introduction to Coca Cola Company
• Its headquaters is located in USA Atlanta, Georgia
• One of the gaint in the beverage sector and one of the well known
soft drink brand of the world with a portfolio of 500 brands and a
footprint in over 200 countries.
• As many as 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 billon and was listed fifth in world’s
most well known brand in 2017(Forbes).
• Its main competiotor during that year was Pepsi Co. inc.

3. Contd….
• Its marketing stratigy evolved over the years and tag line changed
many times from ”Delicious and refreshing” in 1886 to “Test the
Feeling” in 2016.

4. Coca-cola in Indian Market
• Entered in 1950 before exiting in 1970 and re-entering again in 1993.
• The firm operated both franchisee-licienseed and company owned
bottling operation model.
• Its three pronged system in India comprised Coca-cola India,
Hindustan Coca Cola Beverages Pvt Ltd and franchise botteling
partners.
• Coca cola India had over 2.6 million outlet to sell its product and 7000
distribution
• The parent company had commited to invest up to $7 Billion in India
by 2020.

5. Contd….
• Although Coca-Cola India had lost some of its market share in the
Indian soft drinks sector, it had maintain steady leadership in the
market with 37.6 per cent share in 2012, and 32.9 per cent in 2016
far ahead of its main competitors, PepsiCo India Holdings Private
Limited (PepsiCo India), Dabur India Limited (Dabur), and Parle Agro
Private Limited (Parle).
• In keeping with the parent company’s initiatives to lower sugar in its
products internationally, Quincey had suggested that Coca-Cola India
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 lesser sugar consumption.

6. Contd…
• the company’s plans in 2017 was to expand juice distribution, add
salt- and mineral-fortified products to its portfolio, use stevia (a
natural sweetener) to reduce sugar content in its core beverages, and
formulate and reformulate an array of ethnic beverages.

7. The Indian Soft Drink Market
• The Indain non alcoholic beverage had a huge cutomer 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, with juices
and juice-based drinks growing at a compound annual growth rate of 28
percent from 2010 to 2015.
• The 2016 sales figures revealed that juices and fruit drinks Real, Slice,
Tropicana, Rooh Afza, and Tang
• had pushed Pepsi and Coke out of the top five best-selling brands in India.

8. Contd…..
• Moreover, local juice manufacturers like Manpasand Beverages had
become extremely successful, earning revenues of Rs 5.5 billion in
2016, while juice and cold-pressed juice companies like Paper Boat
saw fresh rounds of investment, anticipating the tremendous growth
potential of juice and health drinks.

9. Coca Cola India Compitetors
• PepsiCo India Holdings Private Limited
• Parle Agro Private Limited
• Hector Beverages Private Limited
• Dabur India Limited

10. 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 or 2030 (i.e., sell less of the company’s signature product,
Coca-Cola, and become well known for more than just the Coca-Cola brand); reduce the
sugar content in the company’s products; try to introduce more juice-based drinks and
water; and make small entries into the dairy segment.
• The many announcements from/about Coca-Cola India raised several questions. Was it
wise for a company that was a leader in terms of carbonated (often called “fizzy”) drinks
in India to move away from its core competency? Should Coca-Cola India opt for product
and brand extensions, innovating to retain its relevance in the target market rather than
moving away from what it was known for? Or should the company look towards the
future and cater to the increasing demand for healthier carbonated beverages?