The Coca-Cola Company:

The Coca-Cola Company is the world’s largest beverage company. Founded in 1886 it is the
world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates
and syrups, used to produce nearly 400 beverage brands. It has its corporate headquarters in
Atlanta, with local operations in over 200 countries around the world. Along with Coca-Cola, the
world’s best-known brand, The Coca-Cola Company markets four of the world’s top-five soft drink
brands, including Diet Coke, Fanta and Sprite. Its beverage products encompass nearly 400
brands—including noncarbonated beverages such as waters, juices, sports drinks, teas and
coffees. In 2003 the company reported worldwide net operating revenues of $ 21.0 Billion.

After a 16-years absence, Coca-Cola returned to India in 1993. The Coca-Cola system in India
comprises 27 wholly-owned company-owned bottling operations and another 17 franchisee-
owned bottling operations. A network of 29 contract-packers also manufactures a range of
products for the Company. Leading Indian brands Thums Up, Limca, Maaza, Citra and Gold Spot
join the Company's international family of brands including Coca-Cola, Diet Coke, Sprite and
Fanta, plus the Schweppes product range.

The Case: De-Seasonalizing the Carbonated Soft Drinks Business in

India. Building and Owning Consumption Occasions.

The Carbonated Soft Drink Industry in India has an extremely skewed seasonality towards the
first half of the year. Close to 56 % of the annual sales happen during the months of March-June.
As the temperature falls in the non-summer months the consumption of CSD’s also falls resulting
in idle capacities across the entire supply chain. The problem is compounded because of the need
to plan everything to cater to the peak demands in the summer months to ensure volumes are
not lost because of lack of capacities. While acknowledging the correlation between temperature
and consumption of CSD’s, the company realizes the need to build drinkages for its products in
the non-summer months of the year.

CSD Seasonality

18

16

14

12
Percent Contribution

10
Contribution
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The challenge is therefore to Increase the Per Capita Consumption of its Carbonated Soft
Drink products. As illustrated in the chart below PCC (measured in servings per person, total
bottles sold/population) of Asia ranks lowest amongst the Coca-Cola operating regions across the
globe. India with a PCC of 9 servings per annum has tremendous growth opportunities, but to
do so it needs to get more people to enjoy the refreshing taste of its products more often.
Annual Per Capita Consumption

450

400

350

300

250

200
Annual PCC
150

100

50

0
North America Latin America Europe, Africa Asia
Eurasia amd
Middle East
Operating Regions

Market Estimates of the mix of urban-rural volumes to the country’s annual volume is illustrated
below. Carbonated Soft Drink products retail across every possible outlet type in the country.
From restaurants to the ubiquitous Paan-Wallah, from shopping centers to the railway stations,
the industry’s distribution boasts of an ability to deliver to a channel type as per its requirement.
Market Estimates of the contributions of the various channels to the sales of the company are
illustrated in the chart below.

Contribution
Pop Strata to Volumes
Urban 30.10%
Semi-Urban 43.1%
Rural 26.80%
Total 100%

All India CSD, Channel Mix

Channel Contribution To Business
Eating & Drinking 37%
Grocery Shopping 42%
Other Shopping 20%
Travel 1%
Total 100%

Countries with high PCC’s have successfully reduced the degree of their seasonality by focusing
on creating consumption occasions both “in-home” and in “on premise channels” like restaurants.
A recent consumer study conducted by the company brought out the existing opportunity in the
beverage category by seeking to measure “Share of Throat” of Carbonated Soft Drinks. An
analysis of this data could better help in the understanding of the beverage consuming habits of
the Indian population.
 % of Sample that has consumed % Contribution to total beverage
Beverages Consumed Beverage in last one month consumed (Share of Throat)
Total 100% 100%
Drinking Water 100% 54%
Tea 87% 28%
Coffee 12% 3%
Nimbu Pani 10% 2%
Milk 37% 7%
Carbonated Soft Drinks 13% 2%
Mineral/Packaged Water 2% 1%
Lassi/Butter Milk 12% 2%
Fruit Flavoured Soft Drinks 1% 0%
Fresh Fruit Juice 2% 0%
Squashes/Sherbet/Syrups 1% 0%
Soft Drink Concentrate 2% 0%
Glucose Powders 1% 0%
Packaged Fruit Juices 0% 0%
Energy Drinks 0% 0%
Milk Food Drinks 4% 1%
Flavoured Milk Drinks 0% 0%
Milkshakes 0% 0%
Banta/Goli Soda 0% 0%
Jaljeera/Jeera Drinks 0% 0%
Pure Soda 0% 0%

The contribution of CSD’s to the share of throat as a percentage of beverages consumed was
found to be as low as 2%. The low PCC in India along with this data seems to suggest a huge
volume growth opportunity through the process of creating large scale everyday consumption
occasions for the CSD category. This would however involve breaking into the domain of
traditional Indian beverages like Tea, Coffee, and Nimbu Paani.

The Participating teams are required to deliver the following:

1. A strategy to flatten the seasonality of the carbonated soft drink business in India - focus on
increasing drinkages of carbonated soft drinks especially during the second half of the year.

2. Suggest the big consumption occasions that the company could associate with and plans to
execute against these occasions.

3. Suggest a plan to capture a larger share of throat of the Indian Consumer.

4. Plot out a detailed Marketing and Communication plan that aims to achieve the above.

The teams are allowed to use published data on both consumer behavior and industry trends to
present their case.