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Coca cola

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Coca cola

  1. 1. Coca-Cola India, and its contribution towards GDP NAME: ANJUM KHAN CLASS: MBA CORE (B) ROLL NO. : 35 SUBLECT: INDIAN ECONOMY
  2. 2. INTRODUCTION The Coca-Cola Company, incorporated on September 5, 1919, is a beverage company. Its current CEO is Mr. Muhtar Kent. The Company owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It owns and markets a range of nonalcoholic sparkling beverage brands, which includes Coca-Cola, Diet Coke, Fanta and Sprite. The Company markets, manufactures and sells beverage concentrates, sometimes referred to as beverage bases, and syrups, including fountain syrups, and finished sparkling and still beverages. Outside the United States, it also sells concentrates for fountain beverages to its bottling partners. The Company sells sparkling beverages and a variety of still beverages, such as juices and juice drinks, energy and sports drinks, ready- to-drink teas and coffees, and certain water products, to retailers or to distributors, wholesalers and bottling partners who distribute them to retailers. The Company‟s core sparkling beverages include Coca-Cola, Sprite, Fanta, Diet Coke / Coca-Cola Light, Coca-Cola Zero, Schweppes, Thums Up, Fresca, Inca Kola, Lift and Barq's. Its energy drinks include Burn, Nos and Real Gold. Its juices and juice drinks include Minute Maid, Minute Maid Pulpy, Del Valle, Simply, Hi-C, Dobriy and Cappy. The Company‟s other still beverages include glaceau vitaminwater and Fuze. The Company‟s coffees and teas include Nestea teas, Georgia coffees, Leao
  3. 3. / Matte Leao teas, Dogadan teas and Ayataka teas. Its sports drinks include Powerade and Aquarius. The Company‟s waters include Ciel, Dasani, Ice Dew, Bonaqua and Kinley. The Company competes with PepsiCo, Inc., Nestle, Dr Pepper Snapple Group, Inc., Groupe Danone, Kraft Foods Inc. and Unilever.
  4. 4. COMPANY HISTORY This is the remarkable story about the evolution of an iconic brand and the company that bears its name. Since its birth at a soda fountain in downtown Atlanta, Georgia, in 1886, Coca ‑ Cola has been a catalyst for social interaction and inspired innovation. These unique moments in history, arranged in chronological sequence, have helped create a global brand that provides billions of moments of refreshment every day. 1886 May 8. Coca‑Cola is created by John S. Pemberton and served at Jacobs‟ Pharmacy. Nine drinks a day are sold during this year.Company accountant, Frank Robinson, names the drink “Coca ‑ Cola,” and thinking the two Cs would look well in advertising, pens the famous Spencerian script logo. 1887 Coupons are first used to promote Coca‑Cola.John Pemberton registers his “Coca‑Cola Syrup and Extract” label as a copyright with the U.S. Patent Office. 1892 Asa Candler, who began to acquire „The Coca‑Cola Company‟ in 1888, finalizes the purchase and incorporates „The Coca‑Cola Company‟ as a Georgia Corporation.An advertising budget of $11,000 is authorized.
  5. 5. 1898 The first building is erected for the sole purpose of housing „The Coca‑Cola Company‟. It is quickly outgrown as the Company moves to larger quarters five times in the next 12 years. 1904 The first advertising for Coca‑Cola appears in national magazines.Annual sales of Coca‑Cola hit the 1 million‑gallon mark.Lillian Nordica, noted opera singer, begins to endorse Coca ‑ Cola and appears in nationwide advertising in 1905. 1909 The Coca‑Cola Bottler magazine begins publication and is produced for more than 80 years. 1911 The annual advertising budget for The Coca‑Cola Company surpasses $1 million for the first time. 1916 Asa Candler retires from the Company to successfully run for mayor of Atlanta.
  6. 6. 1919 The first bottling plants are opened in Europe in Paris and Bordeaux.The Coca‑Cola Company is purchased by a group of investors led by Ernest Woodruff for $25 million. 1921 The first employee publication, „The Friendly Hand‟, begins publication. The first use of the slogan “Thirst Knows No Season” helps transition Coca‑ Cola from a summer beverage to one enjoyed year‑round. 1927 The Company begins sponsoring its first radio program, “Vivian the Coca‑ Cola Girl.” 1928 The Company begins its long‑term association with the Olympic Games by supplying drinks from kiosks surrounding the venues in Amsterdam. 1930 The Coca‑Cola Export Corporation is created to market Coca‑Cola outside the United States. 1931 Seeking to create an advertising program that links Coca‑Cola with Christmas, artist Haddon Sundblom creates his first illustration showing Santa Claus pausing for a Coke. For the next three decades, from
  7. 7. 1931 to 1964, Sundblom paints images of Santa that help to create the modern interpretation of St. Nick. 1936 The 50th anniversary of Coca‑Cola is celebrated. Artist N. C. Wyeth creates the calendar for that year. 1945 “Coke” becomes a registered trademark of The Coca‑Cola Company. 1965 The Coca ‑ Cola Company and its bottlers sponsor the first animated television special for the cartoon strip Peanuts, “A Charlie Brown Christmas.” 1970 Coca‑Cola introduces its first sports drink when Olympade is test marketed in the United States. The packaging features a logo for the U.S. Olympic Committee. 1976 The Coca ‑ Cola Company and the Fédération Internationale de Football Association (FIFA) agree to the first‑ever sponsorship between a company and an international sports governing body. 1982
  8. 8. The Coca ‑ Cola Company purchases Columbia Pictures Industries, Inc. While the Company owns the movie studio, “Gandhi” wins an Academy Award for best picture. 1995 The Coca‑Cola Company acquires the Barq‟s root beer brand. 1998 The Coca‑Cola Company announces a 100‑ year partnership with the National Basketball Association. 2001 The Coca ‑ Cola Company and Nestlé create a new company, Beverage Partners Worldwide, to market ready‑ to‑serve coffee and tea beverages. 2007 The new World of Coca ‑ Cola opens at Pemberton Place in Atlanta. The Coca-Cola Company acquires Energy Brands Inc. (glacéau), maker of vitaminwater and smartwater. 2008 Sponsorship of the Beijing 2008 Olympic Games connects with more than 500 million consumers in China.A Coca‑Cola Facebook page is established by two fans. The site has over 22 million fans worldwide as of January 2011 and continues to grow.
  9. 9. 2010 In the aftermath of a devastating earthquake, The Coca ‑ Cola Company launches the Haiti Hope Project, a public‑private initiative that aims to develop a sustainable mango industry in Haiti. 2011 The Coca‑Cola Company celebrates 125 years of brand Coca‑Cola.
  10. 10. MISSION VISION AND VALUES OF COCO-COLA Mission: Its Roadmap starts with a mission, which is enduring. It declares its purpose as a company and serves as the standard against which they weigh their actions and decisions. - To refresh the world. - To inspire moments of optimism and happiness. - To create value and make a difference. Vision: Their vision serves as the framework for their Roadmap and guides every aspect of their business by describing what they need to accomplish in order to continue achieving sustainable, quality growth. - People: Be a great place to work where people are inspired to be the best they can be. - Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. - Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. - Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. - Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. - Productivity: Be a highly effective, lean and fast-moving organization. Winning Culture: Their Winning Culture defines the attitudes and behaviors that will be required for them to make their 2020 Vision a reality.
  11. 11. Values: Their values serve as a compass for our actions and describe how they behave in the world. - Leadership: The courage to shape a better future - Collaboration: Leverage collective genius - Integrity: Be real - Accountability: If it is to be, it's up to me - Passion: Committed in heart and mind - Diversity: As inclusive as our brands - Quality: What we do, we do well Focus on the Market: - Focus on needs of consumers, customers and franchise partners. - Get out into the market and listen, observe and learn - Possess a world view - Focus on execution in the marketplace every day - Be insatiably curious - Work Smart - Act with urgency - Remain responsive to change - Have the courage to change course when needed - Remain constructively discontent - Work efficiently - Act Like Owners
  12. 12. COCA-COLA IN INDIA 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, its 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. 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 its 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 their beverages available to consumers across India.
  13. 13. COCA-COLA’S CONTRIBUTION TOWARDS GDP 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. They strive to ensure that the work environment is safe and inclusive and that there are plentiful opportunities for the 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, its 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, its operations catalysis growth in demand for products like glass, plastic, refrigeration, transportation, and Industrial and agricultural products. Its operations also lead to incremental growth for enterprises engaged in post- production activities like merchandising, marketing and sales. In addition,
  14. 14. they share best practices and technological advancements with its suppliers, vendors and allied industries which often lead to improvement in the overall standards of quality across industries. The Coca-Cola Company has always placed high value on good citizenship. 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.
  15. 15. SWOT ANALYSIS OF COCA-COLA STRENGTHS: 1.The number one beverages brand in terms of reach and sales. 2. Popular subsidiary brands like Coca Cola, Fanta, Kinley, Limca, Maaza, Minute Maid, etc. 3. Global reach with presence in over 200 countries. 4.More than 500 brands on offer. 5.An employee strength of around 1,50,000 people globally. 6.Strong and efficient supply chain network, ensuring that all the products are available even in the most remote places. 7.Strong financial condition. 8.Strong brand recall through advertising and marketing by associating with celebrity brand ambassadors. 9.CSR activities in the field of water conservation and recycling, education, health etc. 10. Effective and efficient packaging technique giving emphasis on recycling and reusing. 11. Long association with international sports events, sponsorships etc. WEAKNESSES: 1.The presence of traces of pesticides in the cola beverages have caused damage to the brand image. 2.Strong competition in the aerated drinks segment from Pepsi Co means constant fight over market share. 3.No presence in the snacks and food industry. OPPORTUNITIES:
  16. 16. 1.Increase its reaching untapped countries and market. 2.Market and popularize the less known products. 3.Acquire other companies. 4.Diversify its product portfolio by entering into snacks industry to compete with Pepsi Co. THREATS: 1.Health consciousness amongst people. 2.Difficulty in complying with different government regulations and norms in different countries. 3.Inflation, economic slowdown and instability. 4.Strong competition.
  18. 18. BRAND LOCALISATION STRATEGY: THE TWO INDIA’S India A: “Life ho to aisi” “India A,” the designation Coca-Cola gave to the market segment including metropolitan areas and large towns, represented 4% of the country‟s population.This segment sought social bonding as a need and responded to aspirational messages, celebrating the benefits of their increasing social and economic freedoms. “Life ho to aisi,” (life as it should be) was the successful and relevant tagline found in Coca-Cola‟s advertising to this audience. India B: “Thanda Matlab Coca-Cola” Coca-Cola India believed that the first brand to offer communication targeted to the smaller towns would own the rural market and went after that objective with a comprehensive strategy. “India B” included small towns and rural areas, comprising the other 96% of the nation‟s population. This segment‟s primary need was out-of-home thirst-quenching and the soft drink category was undifferentiated in the minds of rural consumers. Additionally, with an average Coke costing Rs. 10 and an average day‟s wages around Rs. 100, Coke was perceived as a luxury that few could afford. Coke‟s advertising and promotion strategy pulled the marketing plan together using local language and idiomatic expressions. “Thanda,” meaning cool/cold is also generic for cold beverages and gave “Thanda Matlab Coca- Cola” delicious multiple meanings. Literally translated to “Coke means refreshment,” the phrase directly addressed both the primary need of this
  19. 19. segment for cold refreshment while at the same time positioning Coke as a “Thanda” or generic cold beverage just like tea, lassi, or lemonade. As a result of the Thanda campaign, Coca-Cola won Advertiser of the Year and Campaign of the Year in 2003. COCA-COLA’S ADVERTISING STRATEGY IN INDIA 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
  20. 20. 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 moments. „Seedhi Baat No Bakwaas‟ - its next campaign – instantly connected with the target audience by coming across as a brand
  21. 21. 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. CONCLUSION Coca-Cola operates in more than 200 countries. Because of the local nature of its business, it is in the unique position to contribute to the economic vitality of even the most remote communities around the world. Its global business stimulates job creation throughout our value cycle. It contributes to the economic success of each community by employing local people; paying taxes to governments; paying suppliers for goods, services and capital equipment; and supporting community investment programs. Past independent studies on the economic impact of its business in Asia, Africa and Eastern Europe have consistently shown that for every job in the Coca- Cola system, an average of 10 more jobs are supported in local communities. To produce the world's best known product, The Coca-Cola Company has to employ the highest quality processes and establish standards which guarantee the production of a standardised product which meets consumers' high expectations each and every time they drink a bottle or can of Coca- Cola. In order to guarantee these standards the Company has had to develop a close relationship with its franchisees based on a mutual concern for quality. Total Quality Management lies at the heart of this process involving a
  22. 22. continuous emphasis on getting quality standards right every time and on continually seeking new ways to improve performance. Coca-Cola has spent over $2 million just on advertising and marketing. This makes Coca-Cola well known in many countries In addition, keeping up with today's new trends, the Coca-Cola Company also advertise its products on myspace, facebook and twitter. The Coca-Cola Company knows that no business can run without a plan. Because the Coca-Cola Company has been able to the set the entry barrier in the beverage business very high, new companies are discourage to compete with Coca-Cola. In addition, the Coca- Cola Company has agreements with many of its supplier (mostly bottling company) to exclusively provide by their services to Coca-Cola. Thus, it is almost impossible for new comers to keep up with Coca-Cola and similar competitors with recognized names in the business such as Pepsi. The Coca- Cola success isn't something that has been achieved over night. Many years has passed since John Pemberton created the secret formula for Coca-Cola in 1886. Who would have thought that after over a hundred years, his creation would have this much impact in the world and turn Coca-Cola into a worldwide recognized company.
  • ParamanandaBhadra

    Aug. 28, 2021
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    Dec. 22, 2020
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    Oct. 4, 2015


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