JK BUSINESS SCHOOL

JK Chawk, 1200 meters on Damdama Lake Road, Off Sohna Expressway,

Gurugram, Haryana 122102

STRATEGIC MANAGEMENT
ASSIGNMENT

Batch (2020-2022)
Trimester - III

Submitted to: Prof. Hitesh Manocha

Submitted by: Group 1
 PARTICIPANTS

Name Roll.no.
Harshita sharma 019
Umesh Kumar Kaushik 038
Hunny 042
Sunny Suman 052
Hariprasath V. 071
Mansi Sharma 079
Saurav Ranjan Kumar 089
Ankit Kumar 104
 Company Overview
The coca-cola company is an American multinational beverage corporation, manufacturer and retailer,
and marketer of syrups and non-alcoholic concentrates, which is headquartered in Atlanta, United States.
The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John
Pemberton in Columbus, Georgia. In 2021, the product offered by Coca-Cola is found in over 200
countries worldwide, with consumers of more than 1.8 billion company beverages serving each day.
Based on a global survey conducted by Interbrand in 2011, Coca-Cola is the world’s most valuable brand
of the year. Aside from its popular soft drink brands which come in a variety of flavors and diets, some of
Coca cola’s other popular brands include Dasani water, Bacardi, Fuze, Minute Maid, Powerade, and
sprite.
The Coca-Cola Company started operating in India in 1950. However, in 1977, they withdrew operations
from the country and during October 1993, they decided to re-enter the market.
A brief overview of the company can be depicted as:

Name Coca-Cola India

Logo

Type Private

Industry Beverages

Founded 1892;129 years ago

Founder John Pemberton created the soft drink/beverage “Coca-

Cola”, but it was Asa Candler, who founded the Coca-Cola
Company.

Headquarter One Coca-Cola Plaza, Atlanta, Georgia, United States

Gurgaon, India

Area served India

Parent The Coca-Cola Company

No. of employees 25,000 (direct)

Revenue (Total) US$37.27 Billion

Operating income(Total) US$10.09 Billion

Website www.coca-colacompany.com
 Mission
Their Roadmap starts with their mission, which is enduring. It declares the purpose of the
company and serves as the standard against which they weigh their actions and decisions. So, the
following are their mission values:-

● 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 to continue achieving sustainable, quality growth.
Given below are the vision statements of the company:-

● 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.

Values
Their values serve as a compass for their actions and describe how they will behave in the world.
Following are the major value points given by the company:-

● 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
 Industry Overview
Beverages
The food processing industry in India has a total turnover of around USD 65 billion which
includes value-added products of around USD 20.6 billion. Coca-cola, Pepsi, and Nestle are the
leading beverage brands that have been ruling the Indian beverage market for the past few
decades. Among all the beverages, tea and coffee are manufactured as well as exported heavily
in the international markets succumbing to the individual demands around the world.
The beverage industry in India constitutes around USD 230 million among the USD 65 billion
food processing industry. The major sectors in the beverage industry in India are tea and coffee
which are not only sold heavily in the domestic market but are also exported to a range of
leading overseas markets. Half of the tea and coffee products are available in unpacked or loose
form. Among the hot beverages manufactured in India, tea is the most dominant beverage that is
ruling both the domestic and international market even today. The supply of tea and coffee is
insurmountable in the Indian beverage industry.

INDUSTRY PERFORMANCE FOR LAST 5 YEARS

India has become the 5th largest market by volume for The Coca-Cola Company. Coca-Cola
India achieved this feat on the back of an impressive 1-billion-unit case sale in 2019.
Contributing to the “solid growth,” India presents a promising opportunity to become one of the
top three markets for the company soon.

In 2017, the business launched an estimated 500 new or reformulated products, and the conveyor
belt has been running non-stop ever since. In mid-2019, some 25% of the company's sales came
from innovation, up from 15% in 2017. In regional terms, the spread of Coca-Cola's sales and
volumes has changed little over the past five years and remains fairly evenly distributed between
today's reporting regions of Europe, the Middle East & Africa (EMEA), Latin America, North
America, and Asia-Pacific.

The pandemic has dented sales for the beverage maker across markets due to lockdown measures

Coca-Cola has experienced a volume decline globally of approximately 25%, the company said
in its earnings release. The coronavirus outbreak has hurt the company's sales across all regions,
leading to a significant decline in its Q2 2020 revenue. Coca-Cola is undertaking initiatives to
keep up with changing consumer habits and tap into the recent pandemic-fuelled online sales of
beverages and food. The non-alcoholic beverage giant is also taking necessary measures to help
its employees, customers, and various stakeholders in the face of the pandemic. COVID-19 has
negatively impacted Coca-Cola so far and will continue to do so for the rest of the year because
of its lack of product diversity.
 PROJECTION FOR NEXT 3 YEARS
The world’s largest soft drink manufacturer Coca-Cola said it expects to deliver organic revenue
growth in 2021 after the COVID-19 pandemic battered sales last year and reported better-than-
expected profit in the fourth quarter, sending its shares up about 2% in pre-market trading.
The Coca-Cola Company recently announced strategic steps to reorganize and better enable the
Coca-Cola system to pursue its Beverages for Life strategy, with a portfolio of drinks that are
positioned to capture growth in a fast-changing marketplace.

1.The company is building a networked global organization, combining the power of scale with
the deep knowledge required to win locally.
2.The company will create new operating units focused on regional and local execution that will
work closely with five marketing category leadership teams that span the globe to rapidly scale
ideas.
3.This structure will be supported by the company’s newly created Platform Services
organization, which will provide global services and enhanced expertise across a range of critical
capabilities.
4.That comes also as Coca-Cola Co. aims to make India its third-largest market by volumes,
from fifth-largest at present.
5.Coca-Cola is working on reducing the sugar content in its beverages in three to four years and
has already reduced it in Thums Up and Maaza to below six grams.
6.Innovation, marketing efficiency, and effectiveness are top priorities for the company.
7.The company is reinforcing and deepening its leadership in five global categories with the
strongest consumer opportunities:
• Coca-Cola
• Sparkling Flavors
• Hydration, Sports, Coffee and Tea
• Nutrition, Juice, Milk and Plant
• Emerging Categories

COMPETITORS

Coca-cola is one of the most respected brands in the world and it has long warded off the
competition with the use of a strong distribution strategy and equally strong marketing messages.
Coca-cola has over a period used positive marketing to the best of its advantage and has
rarely been involved in negative marketing (which Pepsi does frequently)

Direct Competitors

● Pepsi
● Red Bull
● Diet Coke/ Diet Pepsi
● Fanta
● Sprite
Pepsi-Pepsi is one of the major competitors and also a dominant rival of Coco- cola because it
also offers various types of soft drinks like carbonated drinks, packaged drinking water, and
flavored juice. It is the second-largest soft drinks company right after Coca-Cola, with a market
share of 24.1% in the domestic market. PepsiCo also offers a range of ready-to-eat packaged
snacks, along with their soft drinks.

Red Bull- Red Bull is the largest and most popular energy drink brand in the world. Red Bull
has managed to create a strong brand image in the market, by using unique brand mascots and
advertisements that make the brand extremely memorable for the audience. It is also a
competitor of Coca-cola because it also deal in the beverage.

Diet Coke/ Diet Pepsi- The diet soft drink market is fast rising, especially with at least
1000 videos and blog articles bombarding people about the sugar content in traditional soft
drinks such as Coca-Cola and Pepsi. As a result, Diet Coke and Diet Pepsi both are being
replaced and being consumed instead of regular Coke and Pepsi. The simple reason is
nowadays peoples are being health conscious and a fitness freak, so Diet Coke or Pepsi is a
good option if someone wants to have soft drinks.

Fanta- It is a sub-brand of the Coca-Cola company and one of the most widely loved fruit-
flavored carbonated drinks. If consumers want a break from cola’s which are black colored,
they would do well with the various tastes of Fanta. Fanta is also known for a differentiated
marketing message in each of the countries in which it operates. But the target message is
always towards “freshness”

Sprite- It is the 5th strongest direct competitor of Coca-cola. Sprite originally started as a
competitor to 7up but it has ended up being a large market shareholder of the soft drinks
market and although it is from the house of Coca-Cola, it is one of the strong coca cola
competitors in the market. There are at least 20 variations of sprite and the soft drink is a hit
with the teenagers. Sprite majorly targets the youth and talks of being a brand with a no-
bullshit – clear message.

Indirect Competitors

● Water
● Coffee
● Other local fruit and flavored juice
 Water- we can say that water is the biggest rival or competitor of Coca-cola because
whenever we feel thirst, we first consider water, and then the second option is soft
drinks. That’s why Coca-cola is trying to be the most available product on the earth
after the air.

Coffee- Many people don’t like Carbonated drinks as they contain caffeine, and are
black, those people like coffee because it is also known as a refreshment drink. It
keeps you fresh.

Some other indirect competitors are local juice and flavored drinks like sugarcane
juice, orange juice, coconut water because they are healthy and tasty as well so many
people prefer these drinks instead of Coco-cola

MARKET SHARE OF TOP FIVE PLAYERS

● Coca-Cola is a leading player in the Indian beverage market with a 60 percent share in
the carbonated soft drinks segment, 36 percent share in the fruit drinks segment, and 33
percent share in the packaged water segment.

● Thums Up- "Grow up to Thums Up" was a successful campaign. The brand's market
share and equity increased. Today, the beverage is the leading cola in India, with 42
percent of the cola market share and 15 percent of the market share for all carbonated
drinks.

● Pepsi held a share of more than 30 percent of the carbonated beverages industry in the
country.
● Maaza With a market share of nearly 30 percent, proved that the country's soft drinks
market goes beyond carbonated beverages. Maaza, owned by Coca-Cola is a mango fruit
drink.

● Mountain Dew's share in the industry is 7-8%. It is a very popular drink in the northern
parts of the country including Punjab, Haryana, and parts of Delhi and Uttar Pradesh
accounting for over 5% of the market. However, it accounts for only around 1.5% to 2%
of the market share in the eastern region

INDUSTRY’S FIVE COMPETITIVE FORCES

● Bargaining power of suppliers:

○ The bargaining power of suppliers of Coca-Cola is weak.
○ The bargaining power of suppliers of Coca-Cola is weak. It is so due to the fact the
variety of suppliers is excessive and the switching costs for Coca-Cola low. While Coca-
Cola can effortlessly switch from one provider to another, it isn't always feasible for any
provider to interchange away from Coca-Cola as easily.
○ That can lead to losses for any of the suppliers. While there are numerous suppliers, the
dimensions of individual providers are small or fairly massive.
○ Moreover, ahead of integration is a far-off opportunity for the maximum of its providers.
Even if there aren't any substitutes for raw materials like sugar, the range of providers
remains excessive.
○ So, the primary elements that have come to mind concerning the bargaining power of
suppliers are: Large range of suppliers, Small to the moderately massive size of
individual providers, Forward integration is tough for the suppliers, and switching costs
for Coca-Cola not so excessive.
● Bargaining power of buyers/customers:
○ The bargaining power of individual customers in the case of Coca-Cola is low.
○ Individual customers usually buy small volumes, and they aren't focused on specific
markets either. However, the level of differentiation between Pepsi and Coca-Cola is low.
Mostly they promote similar flavors.
○ Switching prices are not high for customers and nevertheless, the 2 manufacturers
experience excessive brand loyalty.
○ The customers of Coca-Cola are not priced sensitive. Backward integration isn't always
an opportunity for the customers whether it is an individual purchaser or a huge store.
○ If a store acquires a few bargaining powers then it is most effective because it buys in
huge volumes. Still, usually, the customer’s bargaining power is weak.
● The threat of new entrants:
○ In the beverages' enterprise, numerous factors discourage new manufacturers from
entering. Growing a brand in a single day is impossible.
○ The level of consumer loyalty in the industry is moderate and for any brand to construct
consumer loyalty it's going to take some time.
 ○ So, whilst new entrants can compete with manufacturers like Coca-Cola at a smaller or
nearby level, to construct a brand as large is a tremendous challenge requiring each
capital and professional human resources.
● Threat of substitutes
○ The main substitutes of Coca-Cola products are the drinks made via way of means of
Pepsi, fruit juices, and different hot and cold drinks.
○ The variety of substitutes for Coca-Cola merchandise is high.
○ There are numerous juices and different styles of hot and cold drinks on the market.
○ The switching costs are low for the customers. Apart from it, the first-rate of the
substitute products is likewise usually good. So, based on these factors the threat from
substitutes is strong.
○ In a blind taste test, people can’t tell the difference between Coca-Cola and Pepsi.
● Competitive Rivalry between the existing players:
○ There are two major players in the soda industry, and they are Coca-Cola and Pepsi.
○ There is excessive competition among the 2 essential players. There are some smaller
players too however they do not pose an essential aggressive hazard. The primary players
are almost of the same size and that they have comparable products and strategies.
○ The level of differentiation between the two brands is also low, and therefore the price
competition is intense. People have already heard of the cola wars. So, the level of
competitive rivalry between the existing firms is a strong force

PESTEL Factor

The detailed PESTEL analysis of Coca-Cola examines some of the external factors that impact
the operations of the Coca-Cola Company. It aims to explore some of the local and international
macro-environmental factors that have been influencing both the strategic and the operational
decisions of the company.

Political Factors
The product has a massive presence offers the company both opportunities and challenges.
However, sometimes political decisions by theThe imposition impact the operations of the Coca-
Cola Company and manca-Colabroad. Imposition of various new rules and regulations by the
governplays plays a significant role.
For instance:
· · Health reforms also play a role as in 2006, Kerala, India has banned the
production and sale of Coca Cola because of health concerns.
Laws and reform related to food and beverages and the quality standards
Ian increase or decrease in tax rates can also impact the profit as tax
reforms frequently change and companies have to follow relevant laws to
 do business. Changes to these laws can potentially impact Coca-Cola’s
profit and revenue.
Economic Factors
Economic factors affect the operations of coca-cola differently. Lucas (2020) reports that the
CEO of the Coca-Cola Company is concerned about economic conditions around the world and
how they may impact consumer behavior.
· Global economic crises resultant of recent pandemic attacks as many customers are
losing their jobs and have financial limitations, they may reduce their consumption of soft
drinks like many other less important products and this can have a heavy impact on all
the major global factors and thus affecting Coca Cola.
· Differences in Per capita income
· The differences in GDP rate.
· The rising cost of raw materials and labour is another important factor affecting the
company.
And thus these economic factors have a major and direct impact on the business of this large and
global company.

Social Factors
Social factors too are just as important from a business point of view. Coca-Cola products are
mainly popular for their flavors.
· Any major change in people’s preferences and tastes can impact the profits of a
business. During recent decades people have mostly switched from flavored to healthy
drinks. Such trends can lead to a decline in the popularity of Coca-Cola products.

· The global drive against obesity affected people’s choice of food products. Globally,
junk food and soda beverages have faced a decline in sales. As many people consider
sugary drinks to be a big contributor to many illnesses so people are adopting healthier
lifestyles and moving away from anything which can add to their weight including soda.

Technological Factors
Technology is another important element to address in the PESTEL analysis of Coca-Cola.
While technology in this area might not change daily, it requires lots of investment and
maintenance. Their production and packaging as well as distribution, depend heavily on
technology. To remain profitable, Coca-Cola has to invest heavily in it.
 · Coca-Cola has been using digital technology to create new consumer experiences via
innovative programs like the one launched recently, ‘sip & scan’ lets consumers unlock
experiences and prizes by scanning icons on Coke packages with their mobile phones.
· They are using artificial intelligence (AI) to ensure that it can gain significant
insights into consumer behavior from the data it collects. Introducing Cherry Sprite as a
new flavor was a result of that data collection effort (Mar 2017).
· Social media presence particularly is also an important data source for the company.
The company has an innovation-driven culture. It invites consumers to play online games
and associate with coca-cola products. It uses online advertising to make you feel like
you want the product.

Environmental Factors
Sustainability and environmental concerns have grown central to business in the 21st century and
even for the companies with near-zero or zero environmental footprints. . As a beverage
company, Coca-Cola relies on substantial availability of water. Therefore, a shortage of water in
a given location may impact its operations. Similarly, it has been accused of creating water
shortages in some places. Likewise, in 2019, it was named the worst company for plastic
pollution in the world by Break Free From Plastic, an environmental pressure group so to
building a brand image-

· Coca-Cola is making major investments in environmental issues and water stewardship. It is

investing in water-smart agriculture through programs like CARE and RAIN.

· It has initiated other programs too to reach the community and empower women.

· Apart from reducing its environmental impact, it has focused on recycling and sustainable
packaging.

Legal Factors
Compliance has also become an important concern for businesses around the world and
especially for those operating in the international environment. There are several laws and they
vary from country to country and market to market. Noncompliance can cost billions in fines and
can also result in loss of image. The Coca-Cola company has been fined a substantial amount of
money in some countries over breaches of certain rules and regulations. Therefore, it is very
important to ensure that it meets and fulfills all the local and international rules and obligations
to run its operations smoothly. So it must especially focus on corporate governance, ethics, and
compliance. Even it has its ethics and compliance program so that all its associates are compliant
with whichever part of the world they are employed in.
 SWOT ANALYSIS
The detailed SWOT analysis of Coca-Cola examines both external as well as internal factors that
impact the operations of the Coca-Cola Company. Internal factors are your strengths and
weaknesses. External factors are the threats and opportunities. The primary objective of a
SWOT analysis is to help organizations develop a full awareness of all the factors involved in
making a business decision

STRENGTH
The market leader in the soft drinks industry, Coca-Cola is one of the most renowned brands
across the world.
● Dominant Market Share – Out of Coca-Cola and Pepsi, the only two largest
manufacturers of soft drinks in the beverage segment, Coca-Cola has the largest market
share. Coke, Sprite, Diet Coke, Fanta, Limca, and Maaza are the highest growth drivers
for Coca-Cola.
● Wide audience reach. The Coca-Cola Company’s distribution network allows the chain
to reach more customers than most of its rivals could reach. According to the company,
the company serves 1.9 billion servings a day, more than any other competitor in the
world.
● Extended global reach – It is sold in more than 200 countries with 9 billion servings per
day of Company products. It has introduced more than 500 new products globally. Some
of these are variations of Coca-Cola beverages, like Coca-Cola Vanilla and Cherry Coca-Cola.
Its brands are known to touch every lifestyle and demography.
● Distribution network- Coca-cola has the largest distribution network because of the
demand in the market for its products. On the other hand, due to this successful
distribution network, Coca-cola has been able to command such a high market presence.
● Great Customer Loyalty and Brand Association – This brand connects with customers
emotionally. This brand is linked with happiness and has strong customer loyalty.
Customers would love their specific tastes. For the customers, it would be tough to
identify a substitute for this drink. This brand has a huge fan following apart from other
beverages in the industry. Customers keep purchasing this drink for parties, movie
theatres, while at travel, etc.

WEAKNESS
● Competition with Pepsi – Pepsi is the biggest rival of Coca-Cola. Had it not been Pepsi,
Coca-Cola would have been the clear market leader in the beverage.
● Product diversification – Coca-Cola has low product diversification. Where Pepsi has
launched many snack items like Lays and Kurkure, Coca-Cola is lagging in this segment.
It gives Pepsi leverage over Coca-Cola.
 ● Health Concerns – Carbonated drinks are related to health concerns. It has more sugar in
the drinks and results in the main health issues like diabetes and obesity. Coca-Cola is the
biggest producer of carbonated drinks and these kinds of drinks have been prohibited by
many health experts. This becomes a debatable issue for the brand. Moreover, Coca-Cola
has not formulated any health solution or substitute for this issue yet. This is a huge weak
point for the brand.

OPPORTUNITIES
● Introduce new products and diversify its segments – Coca-Cola has the opportunity to
introduce new offerings in health and food segments just like Pepsi. It can contribute to
their revenue, and they can branch out from carbonated drinks.
● Increase its presence in Developing Nations – There are many regions where the
climate is hot and consume more cold drinks. The brand should find out such regions and
gain more entry into these areas. When the presence in such areas is increased, then it
would do wonders for the brand. Few examples of such regions are the Middle East,
African countries, and many more.
● Market the Low Selling Products – In the Coca-Cola product portfolio, many products
are not accepted in the market. Coca-Cola should focus on those products and market
them as well. By marketing it more, the sales would increase thereby helping with its
revenue.
● Packaged Drinking Water – Coca-Cola has many packaged drinking water brands. One
such brand is Kinley. This is an ideal expansion point for Coca-Cola. There sees an
opportunity to expand and get more drinks in the market that are healthy. This would
reduce criticism from people.

THREATS
● Indirect Competition – There are many kinds of beverages that are a huge threat to the
brand. Various coffee chains like Café Coffee Day, Starbucks, and Costa Coffee are
increasing. These beverages chains provide a healthy competition to Coca-Cola’s
products. Even though it is not seen as a big competitor, it would give a dent to these
kinds of beverages industry. Also, health drinks like Tropicana and Real Fresh and many
energy drinks steal the market share of Coca-Cola indirectly.
● Packaging controversy – Greenpeace censured Coca-Cola in its published report in
2017 for its use of single-use plastic bottles. It has also been criticized over its recycling
and renewable sources.
● Raw material sourcing – Water is the only threat to Coca cola. The weakness of Coca
cola was the vast consumption of water. The water scarcity is on the rise. With the
climate changing, and regions of various countries facing scarcity of water, sooner or
later someone might raise fingers on beverage companies. Thus, Water sourcing is an axe
which can fall anytime on the head of Coca cola. If water is limited or rationed, Coca
cola can experience a major downfall in their revenue and capacity of distribution. The
same can affect its arch rival Pepsi as well.
 Marketing Strategy Of Coca Cola
Coca cola is the brand with the most elevated brand value. Presumably it has gone through the
good and bad times of business to arrive at that position. The promoting blend of Coca cola has
been changing after some time with an ever increasing number of items being added to such an
extent that today it has 3300 items.

Functional strategy

Govern playIan’s

The coco cola alignment work on two major functional strategies

Cost-based strategy: This strategy is used to influence a customer to buy their products and
increase sales this strategy is used to change the buying behavior of the customer so that the
brand comes to their evoked list of preferences.

Differentiated strategy: To coca-cola used this strategy to compete in the global beverage
market and to create value for its consumer and customers. The main mission of coca-cola is “to
refresh the world to inspire the movements of optimism to create the value and make a
difference”.

Grow global carbonated soft drink brands: Coca-cola is set to capture the full potential of the
coca-cola trademark accelerate the growth of the core brand in each brand.

Grow other core brands: Profitable non-carbonated market that includes coffee energy drinks
and sports drinks

Make transformational vileness platform: Coca-cola will enter the market with an initial focus
on tea, juice, and enhance hydration platforms.

System health: It implementing a market by the market focus on system health including bottler
revenue growth, volume, price, mixed, cost, investment, and share, concentrate pricing, cost-
effectiveness, and route to market effectiveness.

Create customer value: They clearly understand what the customer wants and needs. By
Understanding customers, expectation can help to target those value what coca-cola offers.

Product strategy: Coca-cola practices a high degree of product adaptation and modification
across every market it serves. Rapid product testing and adaptation are the hallmarks of coca-
cola product strategy. Product strategy is performed in every individual market. Coca-cola has
significantly stepped up new product development activity to widen its array of non-fizzy drinks.

Products in the Marketing mix of Coca cola

The organization has the greatest portfolio in the refreshment industry containing 3300 items.
Refreshments are partitioned into diet classification, 100% organic product juices, organic
product drinks, water, caffeinated beverages, tea and espresso and so on According to Nielson's
information, Coca cola is the No.1 brand in shining refreshments, squeeze, and retail bundled
water in 2010.

Coca cola has its market presence around 200 nations. Coca cola brands in India are Fanta,
Maaza, Limca, sprite, Thums up, Minute Maid, Nimbu new, Nested frosted tea and so forth

Price in the Marketing mix of Coca cola

Because of the accessibility of wide reach items, the estimating is finished by the market and
geographic portion. Each sub-brand of coca cola has a diverse estimating technique. Their
evaluating methodology depends on the contenders estimating, Pepsi is the immediate contender
to coke. Drink market is supposed to be an oligopoly market (barely any dealers and huge
purchasers), consequently they structure into cartel agreement to guarantee a common
equilibrium in estimating between the merchants.

Place in the Marketing mix of Coca cola

Coca cola is the world's most loved brand and is accessible everywhere in the world. The
circulation arrangement of coca cola follows the FMCG conveyance design. The viable
circulation organization of coke has nearly dissolved the little and centre level parts on the
lookout. In India they have caught even the provincial market by broad conveyance and have
disintegrated the piece of the pie of Bovonto, Kalimark and etc.

Promotion in the Marketing mix of Coca cola

Coca cola receives different publicizing and special methodologies to drive an expanded interest
in the market by partner with way of life and conduct and basically focusing on esteem based
promoting. You are bound to see a coke advertisement individualized for a specific celebration
or in with an overall positive message.

Coca cola utilizes CSR as its showcasing device to acquire passionate advantages in the
purchaser's mind. The current advancements through CSR incorporate the "Backing my school"
crusade with NDTV. It has many brand representatives like Shahrukh khan, Hrithik Roshan,
South Indian Actor Vijay and Trisha, Ghambir, Aamir khan and so forth and has marked
agreement as of late with Imran khan.

It permits value limits and recompenses to wholesalers and retailers and utilizes different kinds
of deals advancements to promote more items into the market. It utilizes both push procedure
through advancements and gets systems through ads and missions.

Distribution strategy in the Marketing strategy of Coca Cola -

It uses several sales and distribution model depending on market, geographic conditions
and the customer’s profile :-
(1) the pre-sale system, which separates the sales and delivery functions, permitting trucks to be
loaded with the mix of product that retailers have previously ordered, thereby increasing both
sales and distribution efficiency,
(2) the conventional truck route system, in which the person in charge of the delivery makes
immediate sales from inventory available on the truck,
(3) a hybrid distribution system, where the same truck carries product available for immediate
sale and product previously ordered through the pre-sale system,
(4) the telemarketing system, which could be combined with pre-sales visits and
(5) sales through third-party wholesalers of the products.

Competitive analysis in the Marketing strategy of Coca Cola

Big Giants in the Non-alcoholic beverages segment have similar strategies & objectives which
means innovation & creative marketing campaigns can help the companies to differentiate from
each other. Competition from the local players is the other major issue that the company is facing
nowadays. Pepsi is the single largest main competitor of Coca-Cola having products across the
segments.

Market analysis in the Marketing strategy of Coca Cola

Non-alcoholic beverages market is an ever-growing industry & with the advent of growing Asian
markets & developing nations the consumption will be higher also due to the changing lifestyle,
economic conditions & changing buying habits. In this industry customers have got lots of
options ranging from water to tea/coffee to soft drinks, so chances of customers switching to
another brand is high. The only way to differentiate products & retain customers is the strong
brand building, and creating pull in the market.
Customer analysis in the Marketing strategy of Coca Cola – Coca cola targets a mass market.
And the customer expectation is low price, great taste, convenience & accessibility and various
options to choose from.

Value Chain Analysis

Primary Activities

The primary value chain activities of Coca-Cola Company are directly involved in producing and
selling the product to targeted customers. Analysis of primary value chain activities can improve
the performance of Coca-Cola Company The as explained below:-

Inbound logistics: The company occasionally faces significant challenges in accessing their
raw materials. Water is the main ingredient for all products manufactured by Coca Cola
Company and Coca Cola also uses high fructose corn syrup (HFCS), Orange juice and orange
juice concentrate extensively and this raw material is purchased from various suppliers and
delivered via trucks. For international purchases inbound logistics are facilitated via ships and
trucks. Coca Cola values diversity among its suppliers.

Operations: Coca Cola manufactures and sells concentrates, beverage bases and syrups to its
bottling partners, maintains ownership of the brand and develops and applies marketing strategy.
Bottling partners, entities that do not belong to Coca Cola, do manufacturing, packaging,
merchandising and they distribute the final product to customers and vending partners.

Outbound logistics: Coca Cola Company sells its products in various cities, towns throughout
the nation and understandably claims to operate the world’s largest beverage distribution system.
Distribution channels utilized by Coca-Cola consists of distribution operations operated or
controlled by the company, independent bottling partners, distributors, wholesalers and retailers.
Moreover, outbound logistics are organized via manual distribution acrosscountry with more
than 2500 independent manual distribution businesses employing more than 11,000 people.
Marketing and sales: Coca Cola applies integrated marketing strategy using advertising, sales
promotions, events and experiences and public relations elements of the marketing mix in a
combined manner. The brand marketing message is associated with being happy, enjoying life
and leading an active lifestyle. Coca Cola's latest marketing efforts have been directed at
combining four popular drinks – Coca Cola, Diet Coke, Coca Cola Zero and Coca Cola Life into
the concept of ‘One Brand’, thus providing wider choice to the target customer segment.
Service: Coca Cola maintains its customer service practices via online chat with a virtual agent
in the official website of the company dedicated customer service phone. Coca Cola website has
a comprehensive FAQ that covers the most aspects of their products in a detailed manner and the
website also addresses a wide range of rumors related to the brand in direct and indirect ways.

Secondary Activities:-
The support activities play an important role in coordinating and facilitating the primary value
chain activities of Coca-Cola Company and can also benefit from analysis of its support
activities as explained below.

Firm infrastructure:The firm infrastructure denotes a range of activities, such as- quality
management, legal matters handling, accounting, financing, planning and strategic management.
Effective infrastructure management can allow Coca-Cola Company to optimize the value of the
whole value chain. Coca-Cola Company must control the infrastructure activities to strengthen
the competitive positioning in the market.

Human resource management:Coca-Cola Company can analyze human resource

management by evaluating different HR aspects, including- recruitment, selection, training,
rewarding, performance management and other personnel management activities. The effective
HR management can allow Coca-Cola Company to reduce competitive pressure. The company
can also achieve its cost minimization objectives by analyzing hiring and training costs with their
relative return. The heavy dependence of Coca-Cola Company on employees' talent will increase
the importance of this value chain support activity.

Technology development:In a modern, technological advanced era, almost all value chain
activities depend on technological support. The technological integration in production,
distribution, marketing and human resource activities requires Coca-Cola Company to realize
the importance of technology development. It can be divided into product and process
technological development activities. Some examples are- automation software, technology-
supported customer service, product design research and data analytics.

Procurement:The procurement in value chain denotes the processes involved in purchasing

the inputs that may range from equipment, machinery, raw material and other items necessary for
producing the finished product. Due to its linkage with multiple value chain activities, Coca-Cola
Company should carefully consider its procurement activities to optimize the inbound, operations and
outbound value chain.
 COMPETITIVE ADVANTAGE OF COCA COLA
Coca-Cola is one of the largest companies of the world and claiming one of the leading positions
with its massive market share in the soft drinks and beverage industry. It has successfully made
itself unique from others and gained a more significant profits margin.

The biggest competitive advantage coca cola holds are:

1. Unique Packaging:The packaging itself is enough to gather the attention of the market
and become the preferred one. And Coca-Cola is superior in this thing. It offers its drinks
in an identically shaped bottle which is unique than everyone else in the market.
2. Different Innovative Flavors:The product portfolio of this brand is huge! Coca-Cola
offers approximately 3900 soft-drinks! And it is continuously inventing and supplying
new products in the market to keep pace with the trend and capture a new area. In 2015, it
launched a drink named “Powerade” to win the sports drink market in Mexico; it also has
a product line called “Simply Beverages” that consists of fresh, distinct flavored drinks
with carafe style bottle packaging. These innovations resulted in a huge success and
helped this brand to increase its market share and profit margin within the industry.
3. Marketing promotion strategy:Coca Cola has the most popular marketing promotion
strategy because its brand is widely known. To make a successful marketing promotion
strategy a company must analyze trends (internal and external), spending throughout the
company, identify customer and touch points for the company and the brand and to have
innovation in its promotions marketing. Coca Cola has been advertising on TV for over
fifty years. Coca Cola songs and commercials are extremely popular and they have
catchy mottos such as “Adds a refreshing relish to every form of exercise”.
4. The Massive Distribution System: Coca-Cola is currently operating in more than 200 nations
globally. And it has made its substantial presence in all of those countries equally. All this
became possible because of its comprehensive supply chain management. It has reached locations
where no other companies couldn’t make themselves available. This brand has established a
broad vending partnership network that has helped it to become available in every situation.

Strategic Posture of Coca-Cola:

A good positioning makes a product unique and makes the users consider using it as a distinct
benefit to them. So, here we are witnessing that 2 of these brands have made genius positioning
strategies tactics and processes. The good positioning gives the product or services the Unique
Selling proposition; it conquers a place in the customer’s mind and makes them a fan of their
products. So how Coca-Cola and Pepsi managed to create a perfect positioning, we are going to
discuss the cases and look at them from different angles.

For this, we need to find out 5 aspects of Strategic postures,

• The target market of Coca-Cola.

• The marketing strategy

• The problem removal

• The social acceptance

• The message strategy

So I have discussed Coca-Cola many times and tried to find out who they target. The reality is
that their target market is very vast and includes every man who has emotions, who want to be
happy, feel beautiful emotions. There are segments of people that always want to be happy, other
segments want recognition or vitality. So here we find out some crucial segments for Coca-Cola
and here are they.

Coca-Cola is targeting children based on their deep feelings; they have a commercial example
where they accentuate the brotherly love. When the elder brother is always making trick on the
little brother and gets on his nerves and one day when the little brother was in trouble and was in
a fight with yard guys, the elder one come to help and makes everyone to run away,

Another example of deep emotion targeting is the Christmas commercials of Coca-Cola. Santa
Claus comes from northern countries and brings gifts for everyone. The Christmas feelings and
gifts feelings are so deep in the hearts of children, and when Coca-Cola shows Santa in its chic,
everybody’s heart melts and then Coca-Cola comes and they immediately long for the drink.

A commercial shows us a man entering a metro train and begins to laugh and people there begin
smiling then laughing like the man. Coca-Cola targets young people who like everyday
activities, enjoy their train trips and would like to smile and enjoy every minute. One of the
targets we call Nesters, who are the following people? They are people for whom family, duties,
and traditions are primarily in their list, they think everybody needs to take their responsibilities
and all their free time work and everything is centered on their family. Like cooking and passing
time in the house, inviting friends for small parties and here is where Coca-Cola wins with its
presence. The traditional joyful drink will make them happy.

● The marketing strategy of Coca-Cola:

The strategy of Coca-Cola has known for a long time, it is to conquer the world with their drinks
and win all the markets. So how did they manage to do that? Wherever you look at Coca-Cola
you find happiness like “happiness machine” or “delicious happiness” or “open happiness” the
famous slogan. So happiness, innocence and the sense of paradise are just one part of the
innocent brand archetype.

● Problem removal:
As I already mentioned people need to be happy, as happiness is a problem nowadays when
tension and complexity of people’s communication are so actual. Nowadays the problem is very
vivid, it is happiness so when we buy a bottle of the drink we buy a little happiness, when we
open it, we open happiness.

Nowadays the company is aware of what people need, they need joy, real friendship, real love
and they emphasize real things like brother love or gatherings of friends and so on where they
would open the happiness and fill the rooms with it.

● Social acceptance:
How does Coca-Cola reach social acceptance, with many different tactics? They do it mainly
with sponsorships like the Olympic Games or American idol, or football world cups. Millions of
viewers are watching these events and seeing Coca-Cola commercials makes them love and
accept the drink. Millions of dollars are spent on these events for the target of social acceptance.
Also, they target main events like Christmas or Thanksgiving Day. Another way of making
social approval is targeting people’s gatherings whether 2 lovers meet each other or gatherings of
friends. They are aware that they should drink Coca-Cola during those times.

● Message Strategy:

Let’s discuss the different ways of messaging Coca-Cola. As I already mentioned Coca-Cola is
based on the Innocent brand archetype which has a desire of experiencing paradise and a goal to
be happy. Innocent brand archetype has a wide range of messaging tactics and here are they. The
call of the Innocent brand archetype is goodness, simplicity, the desire of purity. And then it
comes of a trusting, depending and idyllic emotions and promises.

● Strategic Approach:
On a wider scale, Coca Cola introduced five strategic approaches to achieve its goals
which are as follows:

● Market segmentation:
Market segmentation is a strategic method to divide the market based on volume and
capacity of buyers and using appropriate methods to maximize sales and thereby, earning
profits from each segment. Coca-Cola used this technique to segment the market
according to emerging markets, developing markets and developed markets since every
country in the 200 plus countries play a crucial role in the growth. In emerging markets,
the primary focus was on increasing the sales volume rather than profits so that it
increased its customer domains and made a strong foundation for future business. This
was made possible by selling beverages at economical rates so that higher no. of masses
can enjoy it. In developing markets, a balance was made between volume sold and
pricing, whereas, in developed countries the focus was more on profit making by offering
more small packages and premium packages like glass and aluminum bottles. In 2015,
globally, price/mix rose 2 percent as did volume, helping increase organic revenue 4
percent. Coca Cola also gained Worldwide value share in their industry.

● · Brand establishment and Customer relationship

Brand establishment becomes vital while expanding an organization’s portfolio. Consumers tend
to trust a branded product and often spend an extra penny upon it rather than choosing an
unheard product. Brand name is also viewed as a status quo in developed markets. Coca Cola
made a right decision to invest in developing the brand value by improving and modernizing the
advertisements by investing over $250 million. These ads focused on creating an impact upon
people and changed the perspective of Coca Cola from an occasional drink to an integral part of
people’s life. At the same time, investment was made to improve the position in the energy drink
category, juices and also healthy drinks by making strategic partnerships with Monster Beverage
Corporation, Suja (a line of premium organic juices), Fair life ultra-filtered milk etc. A major
breakthrough took place in 2015 when Coca Cola developed its first global marketing campaign.
The primary objective was to establish the „one-brand‟ strategy to bring all its sub products
under one brand name „Coca-Cola‟. The slogan „Taste the Feeling‟ launched in early 2016
emphasizes the refreshment, taste, uplift and personal connections that are all part of enjoying an
ice-cold Coca-Cola. For the fitness-oriented consumers, it sent a broader message that they can
enjoy Coca Cola by choosing an appropriate variety of drink with varying numbers of calories in
caffeine.

● ·Increasing financial efficiency

For any business, the ultimate goal is to have maximum returns for the investments with
maximum productivity. In order to achieve this, financial efficiency plays an important role.
Coca Cola made efforts to achieve financial flexibility by implementing a solution known as
„zero-based work‟- wherein annual budget is revised from zero and must be justified annually at
the end rather than simply carrying over at levels established in the previous years. Marketing
Strategy Of Coca Cola ADMIFMS International Management Research Conference Also,
savings are made by choosing to advertise carefully and cut down expenses in non-media
marketing like in-store promotion. Overall $600 million were realized by productivity
improvement in 2015 which were further used in brand making, business improvement and
providing decent dividends to shareowners. The organization plans to use the same process to
further increase the productivity and make continuous savings, and treat it as a day-by-day
process of becoming leaner and better.

● Increasing process efficiency

An organization can be termed to be fully efficient when its process time is minimized without
affecting the quality. Process time plays an important role when the demand is suddenly creased.
Inefficient pre-planning and process planning will lead to disruption in supply of high demands.
In a continuous evolving market with highly volatile consumer demands both in quantity and
preferences, innovative supply chain markets, speed, precision and empowered employees
decide the winner. Coca Cola took steps to reshape their business processes and searched for
redundant areas. It removed a layer of functional management and connected our regional
business units directly to headquarters. Further investigation led to removal of process
roadblocks and barriers which finally made it faster, smarter and more efficient. Focus was also
made to interact more with employees to make work a fun-filled, exciting and career fulfilling
environment. Employees were motivated to nourish curiosity, learning, innovation and growth.

● Focusing core competencies and business models

Coca Cola has developed a business model with a portfolio including more than 500 brands
ranging from sparkling beverages to value-added dairy and many more. Over a billion dollars
annually are generated together by few of these in retail sales. It has managed to gather a variety
of consumers thereby generating profits from all segments irrespective of market conditions. Its
primary core competency has been the ability to manage a huge system of independent bottling
partners and also acquiring a number of bottlers under its own. The primary aim has been to
improve performance of bottling partners by increasing productivity, performance, optimizing
manufacturing and distribution systems and finally refranchising the independence of bottling
territories. All this effort finally creates value for retail and restaurant customers.

Production strategy
We all recognize the red can with the logo of Coca-Cola on it, that is why Coca-Cola is the leading
provider of soft drinks in the world. Outpacing its biggest competition Pepsi in 2010, it had the No. 1
selling soda with regular Coke and with Diet Coke. Within the soft drinks category, Coca-Cola has a
number of brand variants, including Dr Pepper and Sprite. Besides having a lot of different pops the
company also produces fruit juices and sports drinks. It is the emphasis on the soft drink industry that has
contributed Coca-Cola 's ability to distinguish itself as a quality provider. Being a multinational company
they have not limited it to only one product, throughout the years they have invented many products other
than their main cola drinks. Maintaining the widest portfolio in the beverage industry, they now comprise
3300 products. Divided into diet categories, 100% fruit juices, water, fruit drinks, energy drinks, tea and
coffee etc.

The core
Bubble Tea beverage in a pre-bottled, ready-to-drink format.

The actual product

Packaging and labeling.

Branding: Colorful, aspect of play, round shaped, prominent Bubble Buzz logo written in
modern font, catchphrases such as “Think outside the Bubble” and “Get Your Buzz”.

Trade name: Bubble Buzz, Coca-Cola product

Brand personality: Energy, funky, cool, functional, original, funny, healthy, etc.
Brand equity: Coca-Cola provides a quality, consistent, innovative and accessible soft drink
reputation.

Augmented product
Nutritional information, Status (social drink), Features promoting the website, Health benefit of a
green tea base.

Marketing considerations
Product life cycle: Bubble Buzz is a low-learning product. With a strong marketing campaign,
“sales [will] begin immediately and the benefits of the purchase are readily understood” Since
Bubble Buzz is prone to product imitation, Coca-Cola’s strategy is to broaden distribution
quickly, which is currently feasible thanks to the company’s high manufacturing capacity.

Product class: Food & beverage / Soft Drinks / Functional Drinks (refer to Appendix D2 for a
break-down of the functional drinks market).

Bubble Buzz follows the practice of product modification Coca-Cola is introducing an existing
beverage (bubble tea) but redefines the drink with a new, more convenient package. Bubble Tea
will now become a widely available drink in multiple retailing (distribution) channels.

Challenges
Awareness may diminish request of coke:

Government officials and customers are more concerned and mindful about wellbeing. Many
press reports show that legal counsellors and customer advocates have been undermined by
organization. Moreover, deceptive exercise identified with agreement to sell soda in school.
Purchasers are more mindful about these issues and negative exposure in the media may
diminish the deals of carbonated drinks.

Increase in competition:

The non-cocktail industry is profoundly cutthroat. Coke needs to rival worldwide organizations
as well as neighbourhood organizations where it works. In numerous nations where coke works
including the USA, Pepsi is an essential rival on the lookout.

Water shortage and low quality

Water is a fundamental element for Coca Cola Company. Numerous pieces of the world are
likewise restricted assets. Organization devours colossal measures of water each year. Request of
water increment all throughout the planet and nature of accessible water decrease this will build
the creation cost of the organization and influence on benefit.

Expanding in cost of energy:

Coca cola Company's packaging accomplices work a colossal number of trucks and different
vehicles just as they utilize huge amounts of power, gas and other fuel sources to work the
packaging organization. Step by step the cost of fuel is expanding. It will increment the creation
cost of coca cola organization. So it will influence the organization's benefit.

Climate condition:

Weather impacts the deals of the coca cola where organizations work. In summer more
individuals lean toward cold beverages like juice and sprite in any case, in winter the interest of
items declines. Some parts of India where a large portion of the month's temperature is in every
case high in those spots utilization of coca cola is most extreme.

Income Statement of Coca Cola from 2015-2020 And Future Projection of the
Company for upcoming years -
After analysing the revenue growth of the company we can say that the company is continuously
declining on their sales operation, their growth rate is negative and it will take time to recover
from this declining cycle phase. If we talk about the cost of goods sold after studying the income
statement for the last 5 years we concluded that from 2015-2020 it was decreasing it came down
from $17,482 to $13,433. And now about the Gross Profit it’s been seen that the gross profit has
also decreased from $26,812 to $19,581. Company did not take action towards this from a long
time of decrement phase. After this the company studied the operating income and it was seen
that the operating income was low previously and it was increasing till 2019 after that again it
fell down. And the company also checked and concluded its net income which was fluctuating
continuously from 2015-2020. Coca cola continuously takes borrowing from the market but the
good news is that their liabilities are also decreasing side by side. They have sufficient assets to
pay their due so it can bear their losses.

Company at a Glance
Company financial projection for upcoming year
Recommendations
The packaging of Coca-Cola does not affect significantly by PET (polyethylene
terephthalate) and Cans, so that if the company tends to transform the packaging material in
order to lower the cost, then there is no need to worry about it.
The price offered for Coca-Cola needs to be monitored due to the challenges that arise and
several consumers tend to find any soda that has the best price for value for them. So, it is
needed to do benchmarking on challengers’ pricing strategy.

REFERENCES
https://www.coca-colacompany.com/
https://www.coca-colaindia.com/
https://penmypaper.com/knowledge-base/competitors-of-coca-cola
https://www.marketing91.com/marketing-strategy-of-coca-cola/
https://www.coca-colaindia.com/about-us/christina-ruggiero