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A Project Report of An Enterprise Research On Coca Cola Company
A Project Report of An Enterprise Research On Coca Cola Company
A Project Report of An Enterprise Research On Coca Cola Company
COLA COMPANY.
SUBMITTED BY
ROLL NO 1727222649
BATCH 2015-2018
TO
MAGADH UNIVERSITY
FOR THE COURSE OF
I further declare that the information presented in this project is true and original to
Date:06/09/2018
Place: PATNA
First and foremost, I would like to express my sincere gratitude and thanks
towards the MAGADH UNIVERSITY for introducing a course like BBM and
giving all the students a base and a platform to keep abreast with the changing
business scenario.
COLLEGE, for instilling confidence in me to carry out this study and extending
valuable guidance and encouragement from time to time, without which it would
Last but not the least my colleagues for their valuable comments and
ENTERPRISE HISTORY
1 AND BACKGROUND 7-14
ORGANISATION
2 16-22
MARKETS
3 24-38
FINANCIALS
4 40-45
GOVERNANCE
5 47-55
-- REFERENCES 56
Introduction of the Coca-Cola Company
The purpose of this case study is to assess the current situation of Coca-Cola
and the industry, evaluate the existing resources.
5
CHAPTER – 1
BACKGROUND
6
ENTERPRISE HISTORY AND
BACKGROUND
HISTORY
1894 … A modest start for a bold idea
In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-
Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell,
using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler,
who owned the Company. Candler thanked him but took no action. One of his nephews already
had urged that Coca-Cola be bottled, but Candler focused on fountain sales.
Two young attorneys from Chattanooga, Tennessee believed they could build a business around
bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead
obtained exclusive rights to bottle Coca-Cola across most of the United States (specifically
excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton,
soon joined their venture.
The three pioneer bottlers divided the country into territories and sold bottling rights to local
entrepreneurs. Their efforts were boosted by major progress in bottling technology, which
improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were
operating, most of them family-owned businesses. Some were open only during hot-weather
months when demand was high.
Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators.
A group representing the Company and bottlers asked glass manufacturers to offer ideas for a
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distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won
enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the
few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the
most recognized icons in the world - even in the dark!
As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their
ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923
introduction. A few years later, open-top metal coolers became the forerunners of automated
vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.
Led by long-time Company leader Robert W. Woodruff, chief executive officer and chairman
of the Board, the Company began a major push to establish bottling operations outside the U.S.
Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain,
Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in
44 countries.
During the war, 64 bottling plants were set up around the world to supply the troops. This
followed an urgent request for bottling equipment and materials from General Eisenhower's base
in North Africa. Many of these war-time plants were later converted to civilian use, permanently
enlarging the bottling system and accelerating the growth of the Company's worldwide business.
For the first time, consumers had choices of Coca-Cola package size and type -- the traditional
6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans
were also introduced, becoming generally available in 1960.
8
1960s … New brands introduced
Following Fanta® in the 1950s, Sprite®, Minute Maid®, Fresca® and TaB® joined brand
Coca-Cola in the 1960s. Mr. Pibb® and Mello Yello® were added in the 1970s. The 1980s
brought diet Coke® and Cherry Coke®, followed by POWERADE® and DASANI® in the
1990s. Today hundreds of other brands are offered to meet consumer preferences in local
markets around the world.
As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved
into international mega-chains. Such customers required a new approach. In response, many
small and medium-size bottlers consolidated to better serve giant international customers. The
Company encouraged and invested in a number of bottler consolidations to assure that its largest
bottling partners would have capacity to lead the system in working with global retailers.
Political and economic changes opened vast markets that were closed or underdeveloped for
decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in
Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling
facilities in Africa.
21st Century …
The Coca-Cola bottling system grew up with roots deeply planted in local communities. This
heritage serves the Company well today as people seek brands that honor local identity and the
distinctiveness of local markets. As was true a century ago, strong locally based relationships
between Coca-Cola bottlers, customers and communities are the foundation on which the entire
business grows.
9
Mission and Objectives
Mission
Coca-Cola declares the purpose as a company and serves as the standard against actions
and decisions:
To refresh the world…
10
Vision
The vision of Coca-Cola is the framework for their guides of every aspect of its business. It is
presented in 6Ps:
1. People: Be a great place to work where people are inspired to be the best they can be.
2. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy
people's desires and needs.
Board members:
11
12
13
Other Board of directors
14
CHAPTER – 2
ORGANISATION
15
ORGANISATION
ORGANISATION STRUCTURE
CORPORATE
16
Gary Fayard, Chief Financial Officer
Jose Octavio "Pacho" Reyes, Vice Chairman, The Coca-Cola Export Corporation
COCA-COLA AMERICAS
17
Nancy Hunter, Executive Assistant to President – Coca-Cola Americas
COCA-COLA INTERNATIONAL
18
Kelvin Balogun, President, Central, East & West Africa
Curt Ferguson, President, Middle East & North Africa
Therese Gearhart, President, South Central Africa
Galya Molinas, President, Turkey, Caucasus & Central
Asia Zoran Vucinic, President, Russia, Ukraine & Belarus
Europe Group
Pacific Group
Functional Leadership
19
Operational Leadership
Functional Leadership
The building and complex is located across the street from Georgia Institute of
Technology and Midtown Atlanta.
20
In May 2011, to celebrate the 125th anniversary of Coca-Cola, a projection screen
was made for the building that would display various Coke ads through the years and also
transformed the building into a huge cup of ice which then was "filled" with Coke.
21
Certifications:-
2. OHSAS Certification
• ISO 9001:2008
• ISO 14001:2004
• FSSC 22000
22
CHAPTER – 3
MARKETS
23
Markets
Worldwide share and Geographical distribution
24
Product-wise Market share
• All age groups are being targeted but the most potential is the age group from 18-25 that
covers around 40% of total age segment.
• AGE: The target market for the Coca-Cola is based on age. The audience of Coca-Coal
is youngster or youth.
• It has wide range of targeting. It ranges from the age of 15-25 and reaches to 40.
25
• Their targeting is not based gender but the results show that both genders like this
product and use it.
• Life style; busy life style( face shortage of time) and mobile generation.
• Coca-Cola serves its products using mass market technique. Which obviously falls in
undifferentiated marketing and undifferentiated marketing means no segmentation, but
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there are minor factors on which we can say that the coke segments its products and then
targets the customers somehow.
GEOGRAPHIC SEGMENTATION:
INTERNATIONALLY:
Coke segments its products country wise and region
wise.
The most important things is the taste and quality.
It varies according to the taste and income level of the people in that country. I.e.: third
world countries are given low quality and taste
• CLIMATIC: In coke marketing, main idea is to serve it cold, so we that they focus
on hot areas of the world.
• i.e.: ASIA and Middle East etc and their sale increase in summer.
• LOCALY: In INDIA the coke segments more in urban and suburban areas as
compare to rural areas.
DEMOGRAPHIC:
AGE: Coke segments the small children
introducing tastes like vanilla, lime and
cherry. They focus children from 4-12.
Coke specifically target younger than older.
Coke introduces its economy pack and that‘s how the focus
FAMILY TYPE:
family and groups.
INCOME: Coke segments different income levels by packing.
For small income people it has small returnable glass bottle.
For middle people it has small non-returnable bottle.
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For higher income people it has Coke Tin.
PSYCHOGRAPHIC:
class, lifestyle, occupation, level of education and
All psychographics variables the social
personality Coke segments everyone.
But again its there packaging which is different for different consumers.
BEHAVIORAL:
OCCASION:
Coca-Cola segments different occasions which are celebrated in the
country.
EID & DIWALI has become an international event identity of the culture of INDIA.
celebrations available for almost everyone largely goes to Coca-
The credit for making
Cola Company.
is the most popular and biggest-selling soft drink in history, as well as the
best-known brand in the world.
On May 8, 2011, Coca-Cola celebrated its 125thanniversary. Created in 1886 in Atlanta,
Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage at
Jacob's Pharmacy by mixing Coca-Cola syrup with carbonated water.
Coca-Cola was patented in 1887, registered as a trademark in 1893 and by 1895 it was
being sold in every state and territory in the United States. In 1899, The Coca-Cola Company
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began franchised bottling operations in the United States.
Coca-Cola might owe its origins to the United States, but its popularity has made it truly
universal. Today, you can find Coca-Cola in virtually every part of the world.
SPRITE
Introduced in 1961, Sprite is the world's leading lemon-lime flavored soft drink.
Sprite is sold in more than 190 countries and ranks as the No. 3 soft drink worldwide, with a strong
appeal to young people. Millions of people enjoy Sprite because of its crisp, clean taste that really
quenches your thirst. But Sprite also has an honest, straightforward attitude that sets it apart from
other soft drinks. Sprite encourages you to be true to who you are and to obey you.
FANTA
29
DIET COKE
COCA-COLA ZERO
zero was created with young adults in mind and offers great
Coke taste, uplifting refreshment and zero sugar.
30
COCA-COLA LIGHT
FRESCA
With a unique citrus taste, Fresca is a caffeine-free soft drink for discriminating
adults. Fresca was introduced in the United States in 1966 as a calorie-free grapefruit-flavored drink.
Its bubbly, crisp, light taste provides a flavorful beverage to consumers who want great citrus taste in
a calorie-free soft drink. Fresca is sweetened with sugar in some parts of the world.
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GLACÉAU VITAMIN WATER
Glacéau vitamin water has always been a simple idea. Start with water.
And then add bold, fruity flavors and just the right amount of sugar to make it delicious. Finally,
top it off with a little extra nutrition. Genius and it never would‘ve happened if someone hadn‘t
looked at a plain bottle of water and said, ¯what if this was a little better?‖ making things a little
better is what makes glacéau vitamin water great. Glacéau vitamin water, the pioneer of the
nutrient-enhanced water beverage category, is available in over 26 countries. Grab a cold vitamin
water and make your day a little better. Also available with no calories in many countries—
glacéau vitamin water zero.
DEL VALLE
Del Valle Brand has its roots in Latin America and recently joined our
‗billion‘ dollar brand status within The Coca-Cola Company portfolio of brands. It has a
diverse juice line up ranging from 100% juices and nectars to juice drinks and is available in
different convenient packaging for the whole family. The brand is available in Mexico, Brazil,
Colombia, Venezuela, Central America, and other markets in Latin America.
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GLACÉAU SMARTWATER
MELLO YELLO
The smooth citrus taste of Mello Yello has refreshed people's thirst for
over two decades. Its unique taste and confident, in-control style sets it apart from other soft
drinks. Mello Yello highlights the smooth choices in life - because when you drink Mello
Yello, everything goes down easy.
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FUZE
FUZE® is reinventing the juice drink experience with its line of flavored
beverages that blend together the goodness of diverse fruity flavors and nutritional ingredients.
The new and improved FUZE is now available in twelve mouthwatering flavor varieties, each
of which is an excellent source of antioxidant Vitamins A, C and E.
FUZE TEA
FUZE TEA is a new global tea brand from the Coca-Cola family that is a
fusion of tea with fruit flavors and other natural ingredients. Created through a special process
that ensures a delightful fusion of tea, fruit and other natural flavors, FUZE TEA delivers a fresh,
contemporary expression of tea.
34
BURN
HONEST TEA
NOS
Popular among auto enthusiasts, NOS is sold in 16-oz. cans and 22-oz. re-
sealable bottles, with the latter bearing a resemblance to actual Nitrous Oxide canisters used in
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automotive performance. The unique 22-oz. package won a National Association of Container
Distributors packaging innovation award in 2007. NOS Energy Drink was developed in 2005 by
FUZE Beverage and Holley Performance Products and was purchased by The Coca-Cola
Company in 2007.
ODWALLA
POWERADE ZERO
36
COCA COLA’s OTHER INDIAN PRODUCTS
37
POLAR BEAR DRINKING COCA-COLA
38
CHAPTER – 4
FINANCIALS
39
FINANCIALS
FINANCIAL STATEMENTS
40
Contd…
41
Servings per person
42
Global Workforce
43
Market Capitalization
44
Stock Split History
45
CHAPTER – 5
GOVERNANCE
46
GOVERNANCE
Scam Overview
• Each bottling plants extracts up to 1.5m liters of water every day from the ground.
• The conditional license granted by the local Panchayat authorized the use of motorized
pumps
• But the company drilled more than six wells & illegally installed high-powered
electric pumps to extract millions of liters of pure water.
• The level of the water table fell from 45 to 150 meters below the surface.
• The company started dumping waste outside causing a serious health hazard.
47
Kala Dera - Thirsting from Coca-Cola
• Kala Dera is a large village outside the city of Jaipur.
• Coca-Cola started its bottling operations in Kala Dera in 2004, and within a year, the
community started to notice a rapid decline in groundwater levels.
48
Unusable Well in Kala Dera Showing Depleted Water Level
• For many children it meant leaving schools to provide a much needed helping hand
in household since the women had additional burdens.
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Community response
The community in Kala Dera organized itself to challenge the Coca-Cola Company for the
worsening water conditions - through extraction and pollution - and demanded the closure of
the Coca-Cola bottling plant.
Company's Response
The company, in usual fashion, denied any wrongdoing, blaming "outsiders" for the
increasing local community opposition
50
The assessment noted that the plant's operations would continue to worsen water situation
51
Coca-Cola should no longer utilize the overexploited groundwater resource in Kala Dera
1. Transport water from the nearest aquifer that may not be stressed.
The community in Kala Dera welcomed the recommendations and waited for company‘s
response.
It was also announced that the company will become "water neutral" in India by 2009
52
Some serious concerns about Coca-Cola's claims on rainwater
harvesting
• The company announced that it has recharged five times the amount of water it has used.
• When asked to back it up with numbers, Coca-Cola does not provide any.
• Coca-Cola states that they "will install measuring devices that will verify the amount
of water recharged."
• If they do not have measuring devices installed to verify the amount of water recharged,
how can they make a claim of recharging five times the water that they have extracted?
• People across Rajasthan are well known in rainwater harvesting and have been
harvesting rainwater long before Coca-Cola started.
• Coca-Cola started rainwater harvesting to overcome response to the growing campaigns
against its water mismanagement.
• Coca-Cola was bluffing people with its rainwater harvesting.
• The rainfall in the area is too low, and the amount of rainfalls fluctuates a lot
contributing to 30 days of rains every year
53
• 80% of those rains come in just two or three days and hence rainwater harvesting is
simply not efficient
• Based on their rainwater harvesting initiatives Coca-Cola company has announced that
they will become water neutral in India by 2009
• Coca- cola will recharge more water than the use from the groundwater resource. ---
A BLUFF
• In 2005, Coca-Cola's Indian subsidiary, sent a letter to Mr. Haksar threatening him with
serious legal actions unless the billboard was replaced 'unconditionally and immediately'.
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• Coca-Cola would seek Indian Rupees 2 million (US$ 45,000) for "incalculable damage
to the goodwill and reputation" of Coca-Cola, and also sought an 'unconditional apology
in writing'.
• Mr. Haksar said that he had no intentions of issuing any apology because he has not
committed anything wrong.
Negative Publicity
Besides, Coca-Cola‘s products are always labeled as ¯junk food‖. People criticize Coca-
Cola‘s beverage contain too much sugar and high is calories. It is labeled as one of the important
factors of causing serious obesity rate in developed countries.
Such negative publicity could adversely impact the company‘s brand image and
the demand for Coca-Cola products. This could also have an adverse impact on the
company‘s growth prospects in the international markets.
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REFERENCES
• http://en.wikipedia.org/wiki/Coca-Cola
• http://www.kemplen.co.uk/the-end/the-end.jpg
• http://www.picgifs.com/wallpapers/wallpapers/coca-cola/Coca_Cola03.jpg
• http://images4.fanpop.com/image/photos/15300000/Coca-Cola-bottles-through-the-years-
coke-15337419-500-274.jpg
• http://www.coca-colasantafe.com/files/slides/people-drinking-coca-
cola_0.png?1308086280
• http://news.bbc.co.uk/2/hi/4706275.stm
• http://en.wikipedia.org/wiki/The_Coca-Cola_Company
• http://heritage.coca-cola.com/
• http://www.coca-colacompany.com/investors/stock-history/investors-info-dividends
• http://usatoday30.usatoday.com/money/industries/food/story/2012-07-10/coca-cola-
stock-split/56128588/1
• http://www.coca-colacompany.com/stories/
• http://www.coca-colacompany.com/brands/
• www.coca-colaindia.com
• www.coca-cola.com
• www.coca-colacompany.com
• www.us.coca-cola.com
• www.coca-cola.co.uk/
• www.cokecce.co.uk/about-us/sites-and-offices.aspx
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