Marketing Strategies of Coca-Cola India | MBAtious
Coca-Cola was the 1st international soft drinks brand to enter India in early 1970’s. Indian market was dominated by domestic brands, with Limca being the largest selling brand. Cola was the largest selling flavor with market share of 40%, Lemon drinks 31% and orange drinks only 19%. Up till 1977, Coca-cola was the leading soft drink brand in India.But due to norms set by the Foreign Exchange Regulation Act (FERA), Coca-Cola left India and did not return till 1993 after a 16 year absence from the Indian beverage market. FERA needed Coca-Cola to reveal its secret concentrate formula as well as reduce its equity stake which was not acceptable.
Coca-Cola got the permission to enter the country with a 100 per cent unit in India. On September 22, 1993, the company bought out the Parle brands. As an entry strategy, Coca-Cola India took over Parle Foods. With a fine and detailed distribution network in place, Coke was now ready to take on archrival over a period of time, Coca-Cola India also bought certain bottling units that earlier belonged to Parle or individual distributors.
Coca-Cola got the permission to enter the country with a 100 per cent unit in India. On September 22, 1993, the company bought out the Parle brands. As an entry strategy, CCI took over Parle Foods. With a fine and detailed distribution network in place, Coke was now ready to take on archrival Over a period of time, CCI also bought certain bottling units that earlier belonged to Parle or individual distributors. In 1993, Thumps Up, Gold Spotand Limca enjoyed around 75% share of the CSD market. With the entry of Coke, CCI decided not to promote the cola brand they took over i.e., they decided to withdraw Thumps Up from the market. This however, did not pay off since the cola market was (and still is) highly polarized and people were unwilling to compromise on the taste of their preferred cola. As a result, Coke’s market share (Coke + Thumps Up) fell to nearly 55%. After 3 years of incurring losses, CCI finally took a decision to re-launch Thumps Up. This strategy paid off and today almost 59% of the market is governed by CCI.
c&f means carrying and forwarding agency... manufacturing or marketing companies kept their goods at one place and distribute them when the dealers or wholesalers or customers . for eg: hll has c&f in hyderabad hll having dealers in all places in andhrapradesh. when ever the dealers place the orders for goods the ordered good will supply from the hyderabad c&f
Difference in advertising for Rural consumers and urban consumers Tricky, clever, gimmicky or even suggestive advertising does not work with rural audiences. ‘Flicks’ using very expensive computer graphics without any human presence, go over the heads of rural population. Television and radio covers some of the areas but still 265 million are beyond the catch of advertisers through the available vehicles. Rural customers idea of consumption and behavior as a consumer is completely different So the message has to be in the liking of the rural customer. Puppet shows in Punjab, Folk media like Ragini in Haryana for communicating qualities of Virat cement, Pala and Daskathia in Orissa for promoting tooth pastes of Colgate Palmolive Baul songs inWest Bengal for advertising insecticides.
Marketing Strategies of Coca-Cola India | MBAtious
MARKETING STRATEGIES OF
Coca-Cola Company is the world's
largest nonalcoholic beverage
ithin our more than 400 brands
are nearly 2,400 beverage
Operations in more than 200
Coca-cola accounts for
Coca cola was invented by john stith
pemberton in 1886 in Atlanta,
he coca-cola formula and brand was
bought in 1889 by Asa Candler who
incorporated the coca cola company in
ithin four years, his merchandising
flair helped expand consumption of
Coca-Cola to every state and territory.
Under Robert W W
. oodruff six decades
of leadership , T Coca-Cola Company
The Coca Cola Company creates value by
executing comprehensive business strategy
guided by six key beliefs:
Consumer demand drives everything we do.
Brand Coca Cola is the core of our business
We will serve consumers a broad selection of
the nonalcoholic ready-to–drink beverages
they want to drink through out the day.
We will be the best marketers in the world.
We will think and act locally.
We will lead as a model corporate citizen.
Coca-Cola is guided by shared values that both the employees
as individuals and the Company will live by; the values
RSH : The courage to shape a better future
PASSION: Committed in heart and mind
Y: Be real
AB IT If it is to be, it’ s up to me
ION: Leverage collective genius
ION: Seek, imagine, create, delight
QUAL Y: What we do, we do well
PROF : Maximizing return to shareowners while
being mindful of overall responsibilities.
P OPL : Being a great place to work where people
are inspired to be the best they can be.
ORT OL Bringing to the world a portfolio of
beverage brands that anticipate and satisfy peoples’
Desires and needs.
ART RS: Nurturing a winning network of
partners and building mutual loyalty.
P ANE : Being a responsible global citizen that
makes a difference.
Coco cola in India
Coca-Cola was the 1st
international soft drinks brand to
enter India in early 1970’s.
Indian market was dominated by
domestic brands, with L
being the largest selling brand.
Cola was the largest selling
flavor with market share of
Withdrawal from India
Up till 1977, Coca-cola was the leading
soft drink brand in India.
ut due to norms set by the F
xchange Regulation Act (F RA), CocaE
Cola left India and did not return till
1993 after a 16 year absence from the
Indian beverage market.
F RA needed Coca-Cola to reveal its
secret concentrate formula as well as
reduce its equity stake which was not
ure drinks, Delhi launched Campa-Cola,
to take advantage of Coke’s exit and by
the end of 70’s, was the only Cola drink
in the Indian market.
In 1980, P
arle, another major Indian
player launched T
humsUp, the drink
which till date is most popular soft-drink
ure Drinks strongly objected to
humsUp being called a “soft” drink as it
felt its taste is too strong.
Re-entry into the Indian Markets
Coca-Cola got the permission to enter the
country with a 100 per cent unit in India.
On September 22, 1993, the company
bought out the P
As an entry strategy, CCI took over P
ith a fine and detailed distribution
network in place, Coke was now ready to
take on archrival
In 1993, T
humps Up, Gold Spotand, L
enjoyed around 75% share of the CSD market.
W the entry of Coke, CCI decided not to
promote the cola brand they took over i.e.,
they decided to withdraw T
humps Up from the
market. T however, did not pay off since the
cola market was (and still is) highly polarized
and people were unwilling to compromise on
the taste of their preferred cola.
As a result, Coke’s market share (Coke +
humps Up) fell to nearly 55%. After 3 years
of incurring losses, CCI finally took a decision
to re-launch T
humps Up. T strategy paid off
Coca-Cola is a leading player in the Indian
beverage market with a 60 per cent share in
the carbonated soft drinks segment, 36 per
cent share in fruit drinks segment and 33 per
cent share in the packaged water segment.
In 2004, Coca-Cola sold 7 billion packs of its
brands to more than 230 million consumers
across 4,700 towns and 175,000 villages.
T company has doubled its volumes and
trebled its profits between 2001 and 2004.
As an entry strategy, CCI took over Parle Foods
Acquisition of local popular Indian brands
including Thums Up (the mosttrusted brand in
India21), Limca, Maaza, Citra and Gold Spot
This combination of local and global brands
enabled Coca-Cola to exploit the benefits of
global branding and global trends in tastes while
also tapping into traditional domestic markets.
Leading Indian brands joined the Company's
international family of brands, including CocaCola, diet Coke, Sprite and Fanta
Product line soft-drink:
Diet coke: weight consciousness
Maaza: kids , juice loving people
Sprite: young people
Thums-up: confident, mature and uniquely
masculine attitude people
Fanta: girls, ladies
Thums Up is a leading carbonated soft drink and
most trusted brand in India.
Originally introduced in 1977, Thums Up was
acquired by the Coca-Cola Company in 1993.
Thums Up is known for its strong, fizzy taste and
its confident, mature and uniquely masculine
attitude. This brand clearly seeks to separate the
men from the boys. Mostly like by the youngsters
The competitor of the brand on same category is
Coca cola is the world's favorite drink. It is the
world's most valuable brand and the most
recognizable word across the world.
Coca-Cola has a truly remarkable heritage.
From a humble beginning in 1886, it is now the
flagship brand of the largest manufacturer,
marketer and distributor of non-alcoholic
beverages in the world.
The competitor on the cola category is Pepsi.
This brand is the one of the fastest growing
brand in the country.
Sprite is liked by all age groups & people. Jan
09 report of “The times of India” claims sprite
to be the second brand in sales after Thumsup
Competitor : 7up & Mountain dew
Limca is cloudy lemon in flavor. This is very
unique in this category.
It has white in color.
Competitor : Nimbooz , Lime merinda
Fanta has two flavors apple & orange. This is
very popular drink among females.
The 'orange' drink of the Coca-Cola Company,
is seen as one of the favorite drinks since
1940's. Fanta entered the Indian market in the
year 1993. Over the years Fanta has occupied a
strong market place and is identified as "The
Competitor: Mirinda, Parle’s Appy fizz
This is mango flavor.
Maaza was launched in 1976. It is a drink
which offered the same real taste of fruit juices
and was available throughout the year.
In 1993, Maaza was acquired by Coca-Cola
India and it currently dominates the fruit drink
Competitor: Slice, frooti
MINUTE MAID pulpy orange
This is orange juice.
This contains no sugar & added flavor.
This is a family drink.
Competitor : Tropicana
This comes in two variety-mineral water &
soda. Mineral water is used by all but soda is
commonly used for alcoholic purpose by adult
Competitor : Aquafina, Bisleri
Intensive Brand Building
The company focuses on understanding the
Indian consumer, and in using these local insights
to build powerful connect for its brands.
popularity of cricket and movie stars
Activating local Indian festivals and occasions
Creating a distinct identity for each of its flagship
'Coca-Cola' is the most recognised
trademark, recognised by 94% of the world's
population and is the most widely recognised
word after "OK"
Thums up of coca cola is targeted to the adventurous and
energetic people that are interested in adventure and
love taking risk to succeed.
Minute Maid of Coca cola are specially targeted to
healthconscious customers and want health drink having
natural energy in it.
The drink is specially launched for the lady sector of
the population and these drinks are positioned in that
RURAL VS. URBAN MARKET
BRAND LOCALISATION STRATEGY: THE TWO
INDIA A: “LIFE HO TO AISI”
This designation Coca-Cola gave to the
market segment including metropolitan areas
and large towns represented 4% of the
INDIA B: “THANDA MATLAB COCA COLA”
INDIA B included small towns and rural
areas, comprising the other 96% of the
Coca cola is worldwide famous for their
Distribution channel. IN India the distribution
network of Coca cola had 6.5lakh outlets
across the country in 2000 .For the urban
distribution channel these companies adopted
the model like direct store distribution, broker
warehouse distribution and Vending & Food
Service (V&FS) systemswhere as these
companies are following the Hub and Spoke
model for rural distribution channel, in which
they divided the different categories of
distributors according to the area they are
RURAL DISTRIBUTION CHANNEL
HUB AND SPOKE MODEL
DISTRIBUTION CHANNEL IN URBAN AREAS
Direct Store Distribution
Broker Warehouse Distribution (BWD)
Vending & Food service (V&FS) systems.
T effectively achieve the
stable balance between
sales and covering the
Company has priced the
product same as that of its
major competitor of the
Coca cola is using Push strategy in which they
use its sales force and trade promotion money to
induce intermediaries to carry, promote and sell
the product to end users i.e. consumers.
For example-as coca cola is giving free pet
bottles and other trade schemes to distributors,
agency owners and retailers.
Coca-cola is also using Pull strategy in which they are
using advertising and promotion to persuade consumers
to ask intermediaries for the company brand product by
this way coca cola inducing customer to order it from
SALES PROMOTION ACTIVITIES
Coca-Cola Food Mela
Coca-Cola & Mc Donald’s
Coca-Cola & key account of MC Donald’s launched
the “we go together” joint promotion to reinstate
amongst consumers a real sense of the affinity that,
both shares globally.
The promotion kicked off with point of sales material
(Danglers, Bunting etc) displayed at all MC
Donald’s restaurants along with a special offer for
coke & fries.
Availability is done according the type of
Activation is important because it helps to
boost the sales of the company. it is done
through the Glow sign, Shelf display, flanges.
Combo boards, Table tops .This boards
usually gives to the E&D outlets
WARM DISPLAY RACK
DISPLAY OF RACK
Supplychain of coca-cola
C & F agent
FACTORS FOR SUCCESS
Diverse product portfolio
Affordable entry price point
Strong brand pull
Ultra low cost model
Minimized internal capital requirements
Rural Market Scenario
The rural population in India accounts for
around 627 million, which is exactly 74.3
percent of the total population.
1/3rd of country’s GNP
450 districts, 6,30,000 villages approx.
Key to success in Rural India
Promotion and Marketing Communication
CCI began focusing on the rural market in the
early 2000s in order to increase volumes.
The Decision was not
Flat sales in urban markets.
Huge size of untapped rural market.
Improvement in income and spending power
of rural people.
Better physical distribution channel.
Aspirations for urban lifestyle.
Increased awareness due to television reach.
Challenges for Coke
Poor rural Infrastructure.
Erratic power supply.
Different consumption habits.
Preference for traditional cold beverages
Price of the branded beverages.
CCI’s Rural Mktg. Strategy
Capacity expansion – 25 prod. lines and doubled bottle capacity.
Unique and different distribution strategy – hub & spoke
Coverage of 1,58,342 villages by Aug. 2003 (81,383 in 2001).
2,00,000 refrigerators to rural retailers.
Introduction of 200ml bottle (chota coke).
Priced at Rs. 5, closed the gap between Coke and basic
Mass media marketing.
Launched TVCs targeted at rural consumers.
Coke realized that the communication media
used in urban markets would not work in
villages because of low penetration of
Outdoor advertising and hoardings, etc.
Participation in weekly mandies, haats, &
Increased ad-spend on Doordarshan .
Importance of Advertising in Rural
The low level of education that creates problem in
brand identification. Since they can not read the
brand names and price tags it makes it easier for
the clones to launch brands similar in label and
design and spoil the brand image.
Unscrupulous retailers are taking the benefit and
damaging the perception of the brands before
they actually enter in to the rural market.
It helps in acceptability of the product.
It helps in market penetration.
To strengthen the brand image of the product.
Issues to focus….
Pesticides Issue and building confidence .
Infrastructure in distribution network.
Competing with local brands
Rural market is more
High growth in terms of sales
Change in the life style
Increase in the per capita income
It can substitute other products
Sluggish performance in
bottled water on bottling
Decline in cash from
Coke Company has a good market reputation and a strong distribution network.
Coke is having a multi brand strategy ad is looking for a great volume opportunity in
Coke is presently no. 1 player in Indian Carbonated soft drinks market.
Coke was born 11 year before Pepsi (in 1987) ad a century later still maintains that
Pepsi and coke both have good brand image.
Coke has less no. of retailers
Less force - it has less no. Have owned bottling plant.
It has not planned for setting up of any new plants where their competitor has
planned to set up several new plants.
A rapidly growing market, which is expanding @ 205 every year.
It can take the market very well with the new investment of Rs. 2400 corers.
It can give a big jerk to its major competitor Pepsi it can increase its number of fountain to a
Increasing trend of cold drink of different brands.
It has a continuous threat from Pepsi as well as various other local soft drinks.
Coke has a major market than Pepsi between the teenager as well as the student due to
advertisement of world cup cricket.
A large amount of expenses on the advertisement.
There is no proper policy of distributing the merchandising assets of the company to the retailers.
The company should search the new target market to expand the market share in this competitive
To meet the demand of the customers the company should set up the new plants as its
competitors are planning to set up.