Report on the Coca-Cola Company

Executive Summary
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 A Study on the Coca-Cola Company

This report is a survey on the Coca-Cola company. It outlines the

history and current scenario of the Coca-Cola Company globally and
locally. The first part of the study takes us through the present state
of affairs of the beverage industry and Coca-Cola Company globally.

The report includes a brief introduction of the beverage industry also

a basic description on the company which includes:

 Company introduction

 History of the company

 Vision and Mission of the company

 Product line of the company

 Analysis of the company via:

1. Porter’s Five Forces Model
2. SWOT
3. PESTLE

The basic objective to conduct the market research was to understand

the company position in the industry, what are its competitive
advantages over the other companies in the market and also to get an
insight on the company’s working.

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 A Study on the Coca-Cola Company

Beverage Industry
In India, beverages form an important part of the lives of people. It is an industry,
in which the players constantly innovate, in order to come up with better
products to gain more consumers and satisfy the existing consumers.

Beverage

Non-
Alcoholic
Alcoholic

Non-
Carbonated
Cabonated

Cola Non-Cola Non-Cola

The beverage industry is vast and their various ways of segmenting it, so as to
cater the right product to the right person. The different ways of segmenting it is
as follows:

 Alcoholic, non-alcoholic and sports beverages.

 Natural and Synthetic beverages.
 In-home consumption and out of home on premises consumption.
 Age wise segmentation i.e., beverages for kids, for adults and for senior
citizens.
Segmentation based on the amount of consumption i.e., high levels of
consumption and low levels of consumption

Company Profile
MISSION:
Our Roadmap starts with our mission, which is enduring. It declares our purpose
as a company and serves as the standard against which we weigh our actions and
decisions.

 To refresh the world...

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 A Study on the Coca-Cola Company

 To inspire moments of optimism and happiness...

 To create value and make a difference.

VISION:
Our vision serves as the framework for our Roadmap and guides every aspect of
our business by describing what we 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.

VALUES:
Our values serve as a compass for our actions and describe how we 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.

Company Introduction
Coca-Cola, the product that has given the world its best-known taste was born in
Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world ‘s leading
manufacturer, marketer and distributor of non-alcoholic beverage concentrates

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and syrups, used to produce nearly 400 beverage brands. It sells beverage
concentrates and syrups to bottling and canning operators, distributors, fountain
retailers and fountain wholesalers.

The Company’s beverage products comprise of bottled and canned soft drinks as
well as concentrates, syrups and not- ready-to-drink powder products. In
addition to this, it also produces and markets sports drinks, tea and coffee. The
Coca- Cola Company began building its global network in the 1920s. Now
operating in more than 200 countries and producing nearly 400 brands, the Coca-
Cola system has successfully applied a simple formula on a global scale:
―Provide a moment of refreshment for a small amount of money- a billion times
a day.

The Coca-Cola Company and its network of bottlers comprise the most
sophisticated and pervasive production and distribution system in the world.
More than anything, that system is dedicated to people working long and hard to
sell the products manufactured by the Company. This unique worldwide system
has made The Coca-Cola Company the world ‘s premier soft-drink enterprise.

Marketing Mix
The marketing mix refers to the set of actions, or tactics, that a company uses to
promote its brand or product in the market. The 4Ps make up a typical marketing
mix - Price, Product, Promotion and Place.

1. Product: the company has the widest portfolio in beverage industry

comprising of approx. 3300 products. Beverage industry are divided into
divided into diet category, 100% fruit juice, water, energy drinks, tea and
coffee, etc. As per Nielson’s data, Coca-Cola is number one brand in
sparkling beverages, juices, and retail packaged water in 2010. Coca cola
has its market presence around 200 countries. Coca cola brands in India
are Fanta, Maaza, Limca, sprite, Thums up, Minute Maid, Nimbu fresh,
Nested iced tea etc.
2. Price: Due to the availability of wide range of products the pricing is done
according to the market segments. Each sub-brand of Coca-Cola has
different pricing strategy. Their pricing strategy is based on
the competitors pricing, Pepsi is the direct competitor to coke. Beverage
market is said to be a oligopoly market (few sellers and large buyers),
hence they form into cartel contract to ensure a mutual balance in pricing
between the sellers.

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3. Place: Coca-Cola is the world’s most favorite brand and is available all over
the world. The distribution system of coca cola follows the
FMCG distribution pattern. The effective distribution network of coke has
almost eroded the small and middle level players in the market. In India
they have captured even the rural market by extensive distribution and
have eroded the market share of Bovonto, Kalimark etc.
4. Promotion: Coca-Cola adopts various advertising and promotional
strategies to create an increased demand in the market by associating with
life style and behaviour and mainly targeting value based advertising. You
are more likely to see a coke ad individualised for a particular festival or in
with a general positive message.

PRODUCT LINE:
COCA-COLA: - In India Coca-Cola was leading soft drink till 1977 when
Government policies necessitated its departure. Coca-Cola made its return to
the country in 1993 and made significant investments to ensure that the
beverage is available to more and more people, even in remote and
inaccessible parts of the nation.

Over the past fourteen years has enthralled consumers in India by connecting
with passions of India – Cricket, movies, music & food. Coca-Cola‘s
advertising campaigns “Jo Chaho Ho Jaye” & “Life Ho Toh Aise” were very
popular & had entered youths vocabulary. In 2002.Coca-Cola launched its
iconic campaign “Thanda Matlab Coca-Cola” which sky rocketed the brand to
make it India‘s favourite soft drink brand.

LIMCA:- Limca was introduced in 1971 in India. Limca has remained

unchallenged as the No.1 sparkling drink in the cloudy lemon segment. The
success formula is the sharp fizz and lemony bite combined with the single-
minded proposition of the brand as the provider of freshness.

THUMS UP:- Thums up is a leading sparkling soft drink and most trusted
brand in India. Originally introduced in 1977, Thums up was acquires by The
Coca-Cola Company in 1993. Thums up is known for its strong, fizzy taste and
it confident, mature and uniquely masculine attitude. This brand clearly
seeks to separate the men from the boys.

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SPRITE:- Sprite a global leader in the lemon lime category is the second
largest sparkling beverage brand in India. Launched in 1999, Sprite with its
cut-thru perspective has managed to be a true teen icon.

FANTA:- Fanta entered the Indian market in the year 1993. Over the years
Fanta has occupied a strong market place and is identifies as ―The Fun
Catalyst. Perceived as a fun youth brand, Fanta stands for its vibrant color,
tempting taste and tingling bubbles that not just uplifts feelings but also
helps free spirit thus encouraging one to indulge in the moment. This positive
imagery is associated with happy, cheerful and special times with friends.

MINUTE MAID PULPY ORANGE:- The history of the Minute Maid brand
goes as far back as 1945 when the Florida Food Corporation developed orange
juice powder. The company developed a process that eliminated 80% of the
water in the orange juice, forming a frozen concentrate that when
reconstitute created orange juice. They branded it Minute Maid a name
connoting the convenience and the ease of preparation.

MAAZA:- Maaza was introduced in late 1970‘s. Maaza has today come to
symbolise the very spirit of mangoes. Universally loved for its taste, colour,
thickness and wholesome properties, Maaza is the mango lover‘s first choice.

KINLEY:- The importance of water can never be understated, particularly in a

nation such as India where water governs the lives of the millions, be it as a
part of everyday ritual or as the monsoon which gives life to the sub-
continent. Kinley water comes with the assurance of safety from the Coca-
Cola Company.

Ingredients Used for Manufacturing

1. Carbonated Water
2. Acidity Regulator (338)
3. Sweetener (951,950)
4. Preservatives (211)
5. Caffeine
6. Permitted Natural (150d)
7. Added Flavors (Natural Flavoring Substances)
8. Contains no Fruit

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Nutritional Factors (per 100mL)

1. Carbohydrates 11g
2. Sugar 11g
3. Protein 0g
4. Fat 0g
5. Calories 44 kcal

Comparison And Forecast of Past Performance With

Competitors
The past rate of financial progress of the coca cola in terms of market share
especially from previous 5 years is more than $40 billion returns have
accomplished. In the future, it has been projected that coca cola would cross the
revenues of $85 billion in coming or future 5 years. The comparison with the
competitors reveals that Pepsi could be threatening, as there is a difference of
almost $2 billion at least in the net revenues of both the companies annually. The
local or the indirect rivalries of the coca cola are increasing with an efficient level
or rate of penetrating the target markets of the coca cola. Therefore, coca cola
must need to address these types of internal financial indicators for the growth in
beverages markets (McGrath).
Coca cola has determined the important factors in order to create the strategies
that can give then the profit eventually in the market, they are focused on the
beverage market and the soft drink industry market, coca cola can said to be a
market leader because it is the first over in the beverages industry and have the
best brand image across the world. Thus, the main primary competitors of the
coca cola is PepsiCo; as it have the similar products in the market and also had
the positive brand image, both the companies are suffering from the same nature
of the competition and have targeted the audience in the same way, with the
same or similar products.

Analysis of the Company

I. PORTER’S FIVE FORCES MODEL:
The five forces measure the competitiveness of the market deriving its
attractiveness. The analyst uses conclusions derived from the analysis
to determine the company’s risk from in its industry (current or
potential). The five forces are:

 Threat of New Entrants: (Medium Pressure)

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Entry barriers are relatively low for the beverage industry: there is no
consumer switching cost and zero capital requirement. There is an
increasing number of new brands appearing in the market with
similar prices than Coke products Coca-Cola is seen not only as a
beverage but also as a brand. It has held a very significant market
share for a long time and loyal customers are not very likely to try a
new brand.
 Threat of Substi3tute Products or Services: (Medium to High
Pressure)
There are many kinds of energy drink s/soda/juice products in the
market. Coca-Cola doesn’t really have an entirely unique flavor. In a
blind taste test, people can’t tell the difference between Coca-Cola
and Pepsi.
 Bargaining Power of Buyers: (Low Pressure)
The individual buyer no pressure on Coca-Cola Large retailers, like
Wal-Mart, have bargaining power because of the large order quantity,
but the bargaining power is lessened because of the end consumer
brand loyalty
 Bargaining Power of Suppliers: (Low Pressure)
The main ingredients for soft drink include carbonated water,
phosphoric acid, sweetener, and caffeine. The suppliers are not
concentrated or differentiated. Coca-Cola is likely a large, or the
largest customer of any of these suppliers.
 Competitive Rivalry Among Existing Firms: (High Pressure)
Currently, the main competitor is Pepsi which also has a wide range
of beverage products under its brand. Both Coca-Cola and Pepsi are
the predominant

II. SWOT ANALYSIS:

SWOT analysis is a strategic planning technique used to help a person or
organization identify strengths, weaknesses, opportunities, and threats
related to business competition or project planning. The SWOT analysis of
the Coca-Cola company are:

 STRENGTHS:
a. Company Valuation: One of the most valuable
companies in the world, Coca cola is valued around
79.2 billion dollars.
b. Vast Global Presence: Coca cola is present in 200
countries across the world. Chances are, any country
that you go to, you will find coca cola present in that

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market. This vast global presence of coca cola has also

contributed to the building of the mammoth brand
name.
c. 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.
 WEAKNESS
a. Negative Publicity: The Coca-Cola Company has
been involved in a number of controversies and
lawsuits related to its relationship with human rights
violations and other perceived unethical practices.
b. Health concerns: Carbonated drinks are one of the
major sources of sugar intake. It results in two grave
health issues – obesity and diabetes.
c. Aggressive 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.
 Opportunities:
a. Diversification: Diversification in the health and food
business will improve the offerings of Coca cola to their
customers.
b. Developing Nations: Although developed nations have
a high presence of Coca cola, these countries are slowly
moving towards healthy beverages. However, developing
countries are still being introduced to the delight of
carbonated drinks and soft drinks.
c. Supply Chain Improvement: Supply chain can be a
major cost sink hole with the transportation costs always
rising. Coca cola’s complete business is based on
transportation and distribution.
 Threats:
a. Raw material sourcing: Water is the only threat to
Coca cola. The weakness of Coca cola was the suspected
use of pesticides or vast consumption of water. However,
the threat here is that water scarcity is on the rise.

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b. Indirect competitors: Coffee chains like Starbucks, Café

coffee day, Costa coffee are on the rise. These chains offer
a healthy competition to Coca colas carbonated 8 drinks. 

III. PESTEL Analysis:

PESTEL Analysis is a strategic framework used to evaluate the external
environment of a business by breaking down the opportunities and risks
into Political, Economic, Social, Technological, Environmental, and Legal
factors. 
 Political Factors: Coca Cola can have a direct impact by the laws and
regulation of the government on the food products. These laws may
vary from country to country. Earlier due to some trade sanctions of US
and Burma, the sale of Coca Cola was banned in Burma. After nearly six
decades the sale was started in the year 2012 when the sanction was
suspended. There are still two countries Cuba and North Korea where
Coca Cola cannot be bought or sold due to the political condition of
these countries. The recent tiff between US and China resulting in a
trade war has a major impact on the prices of the Coca Cola canned
products. The company is facing cost pressure due to rise in the tariffs
on steel and aluminum.
 ECONOMIC FACTORS: Coca Cola dominates the market with
almost 50% market share in the carbonated beverage market. Despite
all the increase in price due to the tariffs, it has reported 8% growth in
the net revenue in quarter 3 of the financial year 2019. Though the
margin was unfavorably impacted by acquisition of company like Chi
Ltd. in Nigeria. The new trade agreement between US, Mexico and
Canada is supported by the company for free and fair trade between the
nations. The demand of consumers has shifted from sugary drinks to
low calorie drinks. The Coca Cola company has reported 8% increase in
retail value of its products like Diet Coke and Zero Sugar. The CEO of
the company said that Coke Zero Sugar has had its best year in 2018 and
grew the fastest. The demand for these products is expected to rise in
the future too as people are becoming more conscious about their
lifestyle.
 Social Factors: Coca Cola has always come with some social
campaigns to connect to its consumers. In 2014 it had launched a
campaign #shareacoke which was mega successful. People were

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encouraged to find bottles with the name they feel connected to and
then give it to their family or friends and share the same on the social
media platform with the hashtag share a coke. The online Coca Cola
store also let the customers customize their name on the bottles. The
brand connected to the consumer on the personal level. The company
revamped all its social media handles with the mission of becoming
more optimistic brand on social media. It was done on the world
kindness day. It posted all of its content with #refreshthefeed. Such
Coca Cola campaigns connect more to the millennials as they actively
participate in these through social media and personalization has
become their way of living.

 Technological Factors: The Coca Cola company has always been

experimenting in its product line. It is coming with first ever ready to
drink frozen beverage in Japan. The company has a innovation driven
culture. It invites consumers to play games online and associate with
the Coca Cola products. It uses social networking technology to stay
young, fresh and current. The company provides freestyle dispenser
which allows consumers to create its own beverage in various
combinations through computer like interface. It also saves data for
market research which will be further used by the company to
understand the taste and preference of the consumers.
 Legal Factors: Coca Cola has faced trouble due to quantity of caffeine
in its products in different countries in the past. The company was also
accused of paying low wages and inappropriately treating their
employees which attracted various protests from labor unions. It has
alleged suits against racial discrimination to its employees. Mislabeling
of one its products as a pomegranate and blueberry juice in spite of
apple and grape juice has led it to a serious concern. Issues regarding
packaging, water usage and air pollution has been a topic of concern for
the company. It should majorly focus on its corporate ethics. They are
of primary concern to the Coca Cola company.

 Environmental Factors: Coca Cola has faced massive amount of

backlash for the reason of draining off the ground water in India. It has
been reported as the biggest consumer of freshwater in the world. It has
taken steps to eliminate these problems and reduce its carbon
footprints to near zero.

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Coca-Cola role in the Indian Economy

 Coca-Cola is one of the first investors in the country post liberalization.
 India Coca-Cola is ranked 6th globally in the Coca-Cola System
 Coca-Cola is committed to invest about USD$ 7 billion
 Employs over:
a. 25,000 people directly
b. 1,50,000 people indirectly
 Coca-Cola is one of the largest institutional buyers of agricultural produce in the
world.

Factory Location of Coca-Cola in India

 Vast network of 57
plants across India.
 Over 120 product
warehouses.
 Well balanced
distribution across
regions.
 Strategically
designed
distribution to
serve big markets.
 Directly feed into
+7000 distributors
who serve +2.5
million shopkeepers.
 Supported by over 240 suppliers.

CSR by Coca-Cola in India

 Approx. 71 villages and around 1.5 lakh people get benefitted from water
conservation initiatives.
 More than 600 schools re-vitalized through Coca-Cola “SUPPORT MY
SCHOOL PROGRAM”.
 Reaching out to about +25000 mango farmers in Chittoor district
preparing the method of ultra-high-density farming.

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