Professional Documents
Culture Documents
Summer Internship Project-Final Draft
Summer Internship Project-Final Draft
Summer Internship Project-Final Draft
[Type text]
Summer Internship Project
Index
2
History of Coke - 3
Bottling History - 6
Indian History - 12
Coca-Cola India-About the company – 18
Manifesto for growth - 32
Competitors to HCCBPL – 35
Coke v/s Pepsi – 37
Brands of Coca Cola - 46
Balance Sheet of Company - 66
Cash Flow of the Company - 69
Income Statement of the Company - 71
Success factors - 73
2001 Coke Marketing strategy – 75
The BIG turnaround – 82
RED- An innovative distribution strategy - 96
Did you know these facts about Coca Cola? – 98
SWOT Analysis – 100
Questionnaire – 102
Bibliography - 104
Summer Internship Project
History of Coke
THE EARLY DAYS
Coca-Cola was created in 1886 by John Pemberton, a
pharmacist in Atlanta, Georgia, who sold the syrup
mixed with fountain water as a potion for mental and
physical disorders. The formula changed hands three
more times before Asa D. Candler added carbonation
and by 2003, Coca-Cola was the world’s largest
manufacturer, marketer, and distributor of nonalcoholic
beverage concentrates and syrups, with more than 400
widely recognized beverage brands in its portfolio.
INTERNATIONAL EXPANSION
4
Coke’s
5 status as a military supplier, Coca-Cola was
exempt from sugar rationing and also received
government subsidies to build bottling plants around the
world to serve WWII troops.
Bottling History
6
Years
7 1900-1909: Rapid growth
9
In the 1940s: Post-war growth
meet
10 consumer preferences in local markets around the
world.
11
21st Century: Coca-Cola today The Coca-
Cola bottling system grew up with roots deeply planted
in local communities. This heritage serves the Company
well today as consumers 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.
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Indian History
12
Cola
13 was thrown out of the country. In 1991, the first
generation of economic reforms was introduced and
liberalization began.
COKE IN INDIA
Coca-Cola was the leading soft drink brand in India until
1977 when it left rather than reveal its formula to the
government and reduce its equity stake as required
under the Foreign Exchange Regulation Act (FERA)
which governed the operations of foreign companies in
India. After a 16-year absence, Coca-Cola returned to
India in 1993, cementing its presence with a deal that
gave Coca-Cola ownership of the nation's top soft-drink
brands and bottling network. Coke’s acquisition of local
popular Indian brands including Thums Up (the most
trusted brand in India), Limca, Maaza, Citra and Gold
Spot provided not only physical manufacturing, bottling,
and distribution assets but also strong consumer
preference. This combination of local and global brands
enabled Coca-Cola to exploit the benefits of global
branding and global trends in tastes while also tapping
into traditional domestic markets.
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Leading
14 Indian brands joined the Company's
international family of brands, including Coca-Cola, diet
Coke, Sprite and Fanta, plus the Schweppes product
range. In 2000, the company launched the Kinley water
brand and in 2001, Shock energy drink and the
powdered concentrate Sunfill hit the market.
coffee,
16 Gupta and his marketing prowess were critical to
the continued growth of the Company.
bottles
17 versus 17 in Pakistan, 73 in Thailand, 173 in the
Philippines and 800 in the United States.
Coca-Cola India-
18
Both
21 the facets are aligned with international management
system standards, ISO 14001 for Environment Management
and OSHAS 18001 for Safety Management.
At the core of The Coca-Cola Environmental Management
System are five values that affirm the responsibilities of The
Coca-Cola Company and serve as guidelines for our
business partners around the world. Each of these values is
supported by specific requirements and practices that
govern our daily operations and are fundamental to
achieving results consistent with environmental leadership.
Our five values are:
Commitment
Business Planning
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•Operations
22 plan environmental management activities
through annual business planning.
•Top management periodically reviews the progress on
implementation of environmental projects.
Operations Personnel
Operations Support
23
Company Support
Compliance
Legal Requirements
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Wastewater Management
Accountability
Informing Stakeholders
Meeting
27 International Certifications Of Assurance
Coca-Cola ensures that the world’s most acknowledged
Quality Assurance mechanisms have tested your drink before
you taste your favorite beverage. The Coca-Cola quality
system Assurance layer meets the intent of international
standards ISO 9001:2000, ISO 14001 and OHSAS 18001. SGS
and Lloyds of London, internationally recognized registrars,
benchmarked The Coca-Cola Quality System against ISO
9001:2000(Quality) and ISO 14001 (Environmental).
Systems That Have Controlled Quality over a Century
The testing and inspection requirements, which have been part
of the Company’s day-to-day operations for more than 100
years are strictly adhered to. The operations Division of Coca-
Cola India is governing and supporting each of its bottling units
so as to enable them produce world-class products. The entire
system of The Coca-Cola Company is applicable throughout
the bottling operations and is supported with the same
technical and quality tools, systems, procedures and standards.
We guarantee that each operation must achieve the exactly
the same end results.
Responsible Citizen of
28 the World
ENVIRONMENT POLICY
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30
Seek Co-operation with Public, Private and
Governmental Organizations in identifying solutions to
relevant environmental issues.
Ensuring
31 all operations implement eKO Management
System and requirements under ISO 14001 before
December 2004.
VALUES:
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Coca-Cola
32 is guided by shared values that both the
employees as individuals and the Company will live by;
the values being:
LEADERSHIP: The courage to shape a better future
PASSION: Committed in heart and mind
INTEGRITY: Be real
ACCOUNTABILITY: If it is to be, it’s up to me
COLLABORATION: Leverage collective genius
INNOVATION: Seek, imagine, create, delight
QUALITY: What we do, we do well
MISSION:
VISION
33 FOR SUSTAINABLE GROWTH:
PROFIT: Maximizing return to shareowners while being
mindful of our overall responsibilities.
PEOPLE: Being a great place to work where people are
inspired to be the best they can be.
PORTFOLIO: Bringing to the world a portfolio of
beverage brands that anticipate and satisfy peoples’
Desires and needs.
34
Competitors to HCCBPL
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products
36 of the company due to growing health
awareness among people.
37
Lehar
38 Pepsi until 1991 when the use of foreign brands
was allowed under the new economic policy and Pepsi
ultimately bought out its partners, becoming a fully-
owned subsidiary and ending the JV relationship in
1994.
Coca
39 Cola:
States
40 during that period. The red and white colored
scheme in the Coca-Cola logo was kept simple and
distinctive to lure young minds. Even the Coca-Cola
bottle symbolized the ‘youthful exuberance of America’.
The logo got registered as a trademark in 1887 and was
first advertised in the Atlanta Journal in 1915. It has since
then become the brand’s corporate identity.
Pepsi:
PepsiCo, Incorporated is a Fortune 500, American
multinational corporation headquartered in Purchase,
NY with interests in manufacturing and marketing a
wide variety of carbonated and non-carbonated
beverages, as well as salty, sweet and grain-based
snacks, and other foods. Besides the Pepsi-Cola brands,
the company owns the brands Quaker Oats, Frito Lay,
Gatorade, Tropicana, Mountain Dew, Mirinda and 7-Up.
It also owned KFC, Pizza Hut, and Taco Bell, but these
Summer Internship Project
fast-food
41 restaurants were spun off into Tricon Global
Restaurants, now Yum! Brands, Inc.
even
42 offered to sell Pepsi to the Coca-Cola company,
who refused to offer a bid.
In December 2005, PepsiCo surpassed Coca-Cola
Company in market value for the first time in 112 years
since both companies began to compete.
Pepsi
43 has been the perennial and persistent challenger.
Pepsi has changed its logo and its slogans a number of
times since its introduction in 1898.
Though there is much truth in the argument that a logo
that always changes is unsettling and this could be a bad
thing but Pepsi has had a dream run with all the
tinkering it has engineered in its logo. Pepsi logos are
like a trip through 20th century Americana. Every
change has attempted to capture the time perfectly
right upto the last change that seeks affinity with
President Obama’s campaign. Coca Cola on the other
hand is a true example of how a brand should be
consistent to their corporate identity. Today, Coca-Cola
logo is, of course, amazingly similar to what it was 124
years ago.
Colors:
Without doubt Red is a better color for a company into
foods and beverages. There is ample evidence that red
triggers hunger which is the reason behind the fact that
Red is the first choice for the logo and décor of most
restaurants etc.
Summer Internship Project
While
44 in no way running down the efforts of PepsiCo I
state as follows:- the fact that red has been added to
what is a predominantly blue logo has been the real
major factor for Pepsi’s performance.
Even in the case of Thums Up, in India, the combination
of red and blue heralded the turn around in that brand’s
performance.
Soft drinks market in India:
Coca-Cola and PepsiCo together control about 90% of
the carbonated beverage market in India.
Coca-Cola was the leading soft drink brand in India until
1977 when it left rather than reveal its formula to the
government and reduce its equity stake as required
under the Foreign Exchange Regulation Act (FERA)
which governed the operations of foreign companies in
India. After a 16-year absence, Coca-Cola returned to
India in 1993, cementing its presence with a deal that
gave Coca-Cola ownership of the nation’s top soft-drink
brands and bottling network. Coke’s acquisition of local
popular Indian brands including Thums Up (the most
trusted brand in India), Limca, Maaza, Citra and Gold
Summer Internship Project
Spot
45 provided not only physical manufacturing, bottling,
and distribution assets but also strong consumer
preference. This combination of local and global brands
enabled Coca-Cola to exploit the benefits of global
branding and global trends in tastes while also tapping
into traditional domestic markets.
MAAZA
46
GEORGIA
KINLEY
MINUTE MAID PULPY ORANGE
MINUTE MAID NIMBU FRESH
COCA-COLA
DRINK TYPE: SOFT DRINK
COCA-COLA IS THE MOST POPULAR AND BIGGEST-SELLING
SOFT DRINK IN HISTORY, AS WELL AS THE BEST-KNOWN
PRODUCT IN THE WORLD.
1886,
47 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 BEGAN FRANCHISED BOTTLING
OPERATIONS IN THE UNITED STATES.
HISTORY
IN MAY, 1886, COCA COLA WAS INVENTED BY DOCTOR
JOHN PEMBERTON A PHARMACIST FROM ATLANTA,
GEORGIA. JOHN PEMBERTON CONCOCTED THE COCA COLA
FORMULA IN A THREE LEGGED BRASS KETTLE IN HIS
BACKYARD. THE NAME WAS A SUGGESTION GIVEN BY JOHN
PEMBERTON'S BOOKKEEPER FRANK ROBINSON.
Summer Internship Project
BEING
48 A BOOKKEEPER, FRANK ROBINSON ALSO HAD
EXCELLENT PENMANSHIP. IT WAS HE WHO FIRST SCRIPTED
"COCA COLA" INTO THE FLOWING LETTERS WHICH HAS
BECOME THE FAMOUS LOGO OF TODAY.
DIFFERENT PACKAGES
CAN – 330ML
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49
FOUNTAIN-VARIOUS SIZES
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50
GLASS-200ML, 300ML, 500ML, 1LTR
THUMS-UP
THUMS
51 -UP IS KNOWN FOR ITS STRONG, FIZZY TASTE AND
ITS CONFIDENT, MATURE AND UNIQUELY MASCULINE
ATTITUDE. IT SEPERATES MEN FROM BOYS.
HISTORY
INTRODUCED IN 1977 TO OFFSET THE EXPULSION OF THE
COCA-COLA COMPANY AND OTHER FOREIGN COMPANIES
FROM INDIA, THUMS UP, LIMCA, AND CAMPA COLA GAINED
NATIONWIDE ACCEPTANCE. THE BRAND WAS BOUGHT OUT
BY COCA-COLA WHICH, AFTER UNSUCCESSFUL ATTEMPTS
AT KILLING THE BRAND, LATER RE-LAUNCHED IT IN ORDER
TO COMPETE AGAINST PEPSI.
DIFFERENT PACKAGES
CAN- 330ML
FOUNTAIN
52 - VARIOUS SIZES
GLASS- 200ML, 300ML, 500ML, 1LTR
SPRITE
DRINK TYPE: SOFT DRINK
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.4
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
Summer Internship Project
YOU
53 TO BE TRUE TO WHO YOU ARE AND TO OBEY YOUR
THIRST.
HISTORY
SPRITE WAS INTRODUCED TO THE UNITED STATES IN 1961
TO COMPETE AGAINST 7 UP. EARLY MAGAZINE
ADVERTISEMENTS PROMOTED IT AS A SOMEWHAT
SOPHISTICATED, TART AND NOT-TOO-SWEET DRINK MIXER,
TO BE USED (SIMILAR TO TONIC WATER OR GINGER ALE)
WITH ALCOHOLIC BEVERAGES SUCH AS WHISKEY AND
VODKA. IN THE 1980S, MANY YEARS AFTER SPRITE'S
INTRODUCTION, COKE PRESSURED ITS LARGE BOTTLERS
THAT DISTRIBUTED 7 UP TO REPLACE THE SODA WITH THE
COCA-COLA PRODUCT. IN A LARGE PART DUE TO THE
STRENGTH OF THE COCA-COLA SYSTEM OF BOTTLERS,
SPRITE FINALLY BECAME THE LEADER POSITION IN THE
LEMON SODA CATEGORY IN 1978.
DIFFERENT PACKAGING
54 200ML, 300ML
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PET-
55 500ML, 600ML, 1.25LTR, 1.5LTR, 2LTR, 2.25LTR
CAN- 330ML
FANTA
56
HISTORY
FANTA ORIGINATED WHEN A TRADING BAN WAS PLACED ON
NAZI GERMANY BY THE ALLIES DURING WORLD WAR II.
THE COCA-COLA GMBH, THEREFORE WAS NOT ABLE TO
IMPORT THE SYRUP NEEDED TO PRODUCE COCA-COLA IN
GERMANY. AS A RESULT, MAX KEITH, THE MAN IN CHARGE
OF COCA-COLA'S OPERATIONS IN GERMANY DURING THE
SECOND WORLD WAR, DECIDED TO CREATE A NEW
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PRODUCT
57 FOR THE GERMAN MARKET, USING ONLY
INGREDIENTS AVAILABLE IN GERMANY AT THE TIME,
INCLUDING WHEY AND POMACE – THE "LEFTOVERS OF
LEFTOVERS", AS KEITH LATER RECALLED. THE NAME WAS
THE RESULT OF A BRIEF BRAINSTORMING SESSION, WHICH
STARTED WITH KEITH EXHORTING HIS TEAM TO "USE THEIR
IMAGINATION" ("FANTASIE" IN GERMAN), TO WHICH ONE
OF HIS SALESMEN, JOE KNIPP, IMMEDIATELY RETORTED
"FANTA!”
DIFFERENT PACKAGING
CAN-330ML
PET BOTTLE-500ML, 1.5LTR, 2LTR, 2.25LTR & 500ML+100ML
GLASS-200ML, 300ML
FOUNTAIN-VARIOUS SIZES
LIMCA
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DRINK
58 TYPE: SOFT DRINK
THIS THIRST-QUENCHING BEVERAGE FEATURES A FRESH,
LIGHT LEMON-LIME TASTE AND FUN-LOVING ATTITUDE. IT'S
A HOME-GROWN, NATIONAL TREASURE IN INDIA, WHERE IT
WAS ACQUIRED BY THE COCA-COLA COMPANY IN 1993.
LIMCA CONTINUES TO BUILD A LOYAL FOLLOWING AMONG
YOUNG ADULTS WHO LOVE THE LIGHTHEARTED WAY IT
COMPLEMENTS THE BEST MOMENTS OF THEIR LIVES.
HISTORY
LIMCA IS A LEMON AND LIME FLAVOURED CARBONATED
SOFT DRINK MADE PRIMARILY IN INDIA AND CERTAIN PARTS
OF THE U.S.
DIFFERENT
59 PACKAGING
CAN-330ML
PET-500ML, 500ML+100ML FREE, 1.25LTR, 1.5LTR, 2LTR,
2.5LTR
GLASS-200ML, 300ML
FOUNTAIN-VARIOUS SIZES
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M60
AAZA
HISTORY
MAAZA WAS LAUNCHED IN 1976 IN INDIA. THE UNION
BEVERAGES FACTORY, BASED IN THE UNITED ARAB
EMIRATES, BEGAN SELLING MAAZA AS A FRANCHISEE IN
THE MIDDLE EAST AND AFRICA IN 1976. BY 1995, IT HAD
ACQUIRED RIGHTS TO THE MAAZA BRAND IN THESE
COUNTRIES THROUGH MAAZA INTERNATIONAL CO LLC
DUBAI. IN INDIA , MAAZA WAS ACQUIRED BY COCA-COLA
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INDIA
61 IN 1993 FROM PARLE-BISLERI ALONG WITH OTHER
BRANDS SUCH AS LIMCA, CITRA, THUMS UP AND GOLD
SPOT. AS FOR NORTH AMERICA, MAAZA WAS ACQUIRED
BY HOUSE OF SPICES IN 2005.
DIFFERENT PACKAGING
POCKET MAAZA 200ML-
PET BOTTLE 250ML-
PET BOTTLE 600ML-
PET BOTTLE 1.2LTR-
RGB 250ML-
RGB 200ML-
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GEORGIA
62
KINLEY
63
MINUTE
64 MAID PULPY ORANGE
MINUTE
65 MAID NIMBU FRESH
DRINK TYPE: JUICE DRINK
A VERY NEW BRAND INTRODUCED ONLY 6 MONTHS BACK.
MINUTE MAID STARTED OUT IN INDIA WITH THE STATE OF TAMIL
NADU, BUT HAS EVENTUALLY MOVED INTO THE OTHER STATES OF
THE COUNTRY BECAUSE OF THE POSITIVE RESPONSE IT HAS GOT.
DIFFERENT PACKAGING:
400ML, 1 LTR
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66
Balance Sheet of Coca Cola Company
Past 3 years:
PERIOD ENDING 31-Dec-09 31-Dec-08 31-Dec-07
Assets
Current Assets
Cash And Cash Equivalents 6,959,000 4,701,000 4,093,000
Short Term Investments 2,192,000 278,000 215,000
Net Receivables 3,758,000 3,090,000 3,317,000
Inventory 2,354,000 2,187,000 2,220,000
Other Current Assets 2,226,000 1,920,000 2,260,000
Total Current Assets 17,551,000 12,176,000 12,105,000
Long Term Investments 6,755,000 5,779,000 7,777,000
Property Plant and Equipment 9,561,000 8,326,000 8,493,000
Goodwill 4,224,000 4,029,000 4,256,000
Intangible Assets 8,604,000 8,476,000 7,963,000
Accumulated Amortization - - -
Other Assets 1,976,000 1,733,000 2,675,000
Deferred Long Term Asset Charges - - -
Total Assets 48,671,000 40,519,000 43,269,000
Liabilities
Current Liabilities
Accounts Payable 6,921,000 6,152,000 7,173,000
Short/Current Long Term Debt 6,800,000 6,531,000 6,052,000
Other Current Liabilities - 305,000 -
Total Current Liabilities 13,721,000 12,988,000 13,225,000
Long Term Debt 5,059,000 2,781,000 3,277,000
Other Liabilities 2,965,000 3,401,000 3,133,000
Deferred Long Term Liability Charges 1,580,000 877,000 1,890,000
Minority Interest 547,000 - -
Negative Goodwill - - -
Total Liabilities 23,872,000 20,047,000 21,525,000
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67 Stockholders' Equity
PAST 4 QUARTERS:
PERIOD ENDING 31-Dec-09 2-Oct-09 3-Jul-09 3-Apr-09
Assets
Current Assets
Cash And Cash Equivalents 6,959,000 8,846,000 7,647,000 6,816,000
Short Term Investments 2,192,000 279,000 298,000 366,000
Net Receivables 3,758,000 3,465,000 3,746,000 3,139,000
Inventory 2,354,000 2,341,000 2,483,000 2,298,000
Other Current Assets 2,226,000 2,061,000 2,198,000 2,095,000
Total Current Assets 17,551,000 16,992,000 16,372,000 14,714,000
Long Term Investments 6,755,000 6,481,000 6,292,000 5,757,000
Property Plant and Equipment 9,561,000 9,099,000 8,904,000 8,425,000
Goodwill 4,224,000 4,100,000 4,092,000 3,988,000
Intangible Assets 8,604,000 8,525,000 8,535,000 8,426,000
Accumulated Amortization - - - -
Other Assets 1,976,000 1,910,000 1,859,000 1,793,000
Deferred Long Term Asset Charges - - - -
Total Assets 48,671,000 47,107,000 46,054,000 43,103,000
Liabilities
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Current Liabilities
68
Accounts Payable 6,921,000 7,224,000 7,136,000 6,007,000
Short/Current Long Term Debt 6,800,000 6,186,000 6,431,000 7,162,000
Other Current Liabilities - - - -
Total Current Liabilities 13,721,000 13,410,000 13,567,000 13,169,000
Long Term Debt 5,059,000 5,028,000 5,017,000 5,017,000
Other Liabilities 2,965,000 3,124,000 3,051,000 2,944,000
Deferred Long Term Liability Charges 1,580,000 1,123,000 902,000 865,000
Minority Interest 547,000 467,000 - 396,000
Negative Goodwill - - - -
Total Liabilities 23,872,000 23,152,000 22,537,000 22,391,000
Stockholders' Equity
Misc Stocks Options Warrants - - - -
Redeemable Preferred Stock - - - -
Preferred Stock - - - -
Common Stock 880,000 880,000 880,000 880,000
Retained Earnings 41,537,000 40,944,000 39,999,000 38,911,000
Treasury Stock (25,398,000) (24,343,000) (24,174,000) (24,207,000)
Capital Surplus 8,537,000 8,227,000 8,111,000 8,021,000
Other Stockholder Equity (757,000) (1,753,000) (1,299,000) (2,893,000)
Total Stockholder Equity 24,799,000 23,955,000 23,517,000 20,712,000
Net Tangible Assets $11,971,000 $11,330,000 $10,890,000 $8,298,000
Past 4 quarters:
PERIOD ENDING 31-Dec-09 2-Oct-09 3-Jul-09 3-Apr-09
Net Income 1,543,000 1,873,000 2,049,000 1,359,000
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Past 4 quarters:
PERIOD ENDING 31-Dec-09 2-Oct-09 3-Jul-09 3-Apr-09
Total Revenue 7,510,000 8,044,000 8,267,000 7,169,000
Cost of Revenue 2,651,000 2,934,000 2,913,000 2,590,000
Gross Profit 4,859,000 5,110,000 5,354,000 4,579,000
Operating Expenses
Research Development - - - -
Selling General and Administrative 3,079,000 2,960,000 2,916,000 2,716,000
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Non Recurring - - - -
72 Others - - - -
Total Operating Expenses - - - -
Non-recurring Events
Discontinued Operations - - - -
Extraordinary Items - - - -
Effect Of Accounting Changes - - - -
Other Items - - - -
Success factors:
73
Coca-Cola is successful for many reasons, but one of
them is the Atlanta-based megabrand's ability to
identify untapped marketplaces and win over consumers
not only by aggressively pursuing them, but also by
wanting to know them. Now, Coke is reaching out to
bottom-of-pyramid (BOP) consumers in India with
Vitingo, a new drink aimed at low-income consumers.
Yet Coke isn’t alone in India, and for good reason.
Statistics show that 40 million Indian families are moving
from outright poverty to the BOP demographic every
year. Remember, that’s not 40 million people that are 40
million families. Each year, Both Coca-Cola and GSK
know there is no greater brand advocate than a family
member.
Marketing has been an important success factor.
companies
74 to offer a gimmick with their product, this
being a mini yo-yo. It was around 1900 when Coca-Cola
began presenting their signature drink as a delicious and
refreshing formula. This slogan has been repeated for
over the last 100 years selling Coke all over the world.
Through its intense marketing campaigns, Coke has
developed an image that is reflected in what we think of
when we buy Coke and what we associate with drinking
Coke. This image has been subconsciously installed in
our brain by the advertising campaigns that show Coca-
Cola associated with “good times.”
company,
75 typically showing earnings growth of 15-20%
per year, turned in three straight years of falling profits.
It was apparent that the market was changing and in
order to keep up with these changes, Coca-Cola had to
move from a single core product to a total beverage
company. This was a major change because their past
success was base on having one successful core.
locally
76 relevant executions became an increasingly
important element of supporting Coke’s global brand
strategy.
BRAND LOCALIZATION
STRATEGY: THE TWO INDIA’S
their
78 increasing social and economic freedoms. “Life ho
to aisi,” (life as it should be) was the successful and
relevant tagline found in Coca-Cola’s advertising to this
audience.
markets,
79 and concurrently cutting the price in half, to
Rs.5.
Coke’s
80 advertising and promotion strategy pulled the
marketing plan together using local language and
idiomatic expressions. “Thanda,” meaning cool/cold is
also generic for cold beverages and gave “Thanda
Matlab Coca-Cola” delicious multiple meanings. Literally
translated to “Coke means refreshment,” the phrase
directly addressed the primary need of this segment for
cold refreshment. As a result of the Thanda campaign,
Coca-Cola won Advertiser of the Year and Campaign of
the Year in 2003.
Success
81
The BIG
turnaround
After a series of missteps during recent years, Coca-Cola
India has had to learn lessons the hard way. In the
process, says the company, executives had to recalibrate
the old kinks in its supply chain and bust a few myths
about winning over Indian consumers, especially in the
country's highly promising rural markets.
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82
Cold
83 Drinks, Hot Markets
Kapoor.
85 "For the first three or four years [after its return,
Coca-Cola] was grappling with whether it should focus
on Thums Up or Coke, and refrigeration took a back
seat."
beverages
86 directly from the bottling plants to retailers,
its goods are now sent first to a "hub," and are then
parceled out to nearby "spoke" centers when orders
need filling. Among the benefits, that approach reduces
costs because fewer long-haul journeys in large,
uneconomical vehicles are needed, while efficiency
increases through more timely, tailored fulfillment.
think
87 Indian consumers want low-priced products," says
Kapoor. "There cannot be a bigger myth. They want
good-quality products at a reasonable price."
Kapoor points out that between the time that Coke left
India (because of disagreements over government
regulations) and its reentry, it was common practice for
rural consumers to pay one rupee more for packaged
beverages to cover the cost of keeping them chilled.
"How can anyone say they are price-sensitive
consumers?" he asks.
88
company
89 in the country for the second consecutive year,
according to company marketing.
90
another.
91 Indian consumers are "emotional," according to
Kapoor. "Only 50% of what is consumed is what goes in
the mouth and in the stomach; the other 50% goes in the
mind and heart."
Thanks
92 to a growing number of Indians with access to
television, "you can see the consumer experience of your
urban cousins and you want the same experience," adds
Kapoor. Armed with that knowledge, he says marketers
at companies like Coca-Cola need to increase their
investments around educating rural consumers. "In
urban India, it is a question of reach. But in rural India, it
is about reach and preach," he says. "You have to tell
them what a cold drink is, how is it opened, how [to
drink it] in a macho manner by holding your head up --
you cannot take it for granted."
management.
93 The aim is to train 100,000 retailers in the
next two years, according to a Coca-Cola spokesperson.
Neglecting Thums Up
bought
94 Thums Up when it ruled the market, and as a
result Thums Up gave PepsiCo a very hard time when
PepsiCo entered the market," says Kapoor. "Initially,
Coke neglected the Thums Up brand. Then it started
paying attention and Thums Up is still number one in
India, with Coke and Pepsi following."
pollution
95 -- a charge it denies. Just as with distribution,
pricing and the like, Coca-Cola India now knows that
issues like these can make or break even the hardiest of
emerging market strategies.
Innovative Distribution
Strategies
'RED' Approach
CCI built a distribution network in combination with its
bottling partners and contract manufacturers. In urban
areas, it distributes products directly from bottling
plants to retailers. However, owing to lack of proper
infrastructure and difficult access to the remote villages,
it modified its distribution chains and adopted the three-
tier ‘hub and spoke’ distribution model, to penetrate into
the rural areas and increase its sales. Besides its
distribution network, CCI adopted ‘Right Execution
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Daily’
96 (RED) strategy for effective execution of its
distribution mainly in urban areas, which boosted the
sales of the company. RED ensures the proper display,
availability and activation of company’s products in the
retail stores. With the success of RED in urban markets,
the company plans to implement it in rural areas.
SWOT Analysis
Strengths
One of the worlds leading brand.
Large scale of operations.
Excellent revenue growth.
Weaknesses
Negative Publicity.
Low export levels
Opportunities
Growing population.
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Threats
Intense competition.
Imports.
Slowdown in Rural Market.
Strengths
Coca Cola has strong brand recognition across the globe. The
company has a leading brand value and a strong brand portfolio.
It is well ahead of its fierce competitor Pepsi in terms of brand
recognition. Coca Cola owns 4 of the top 5 brands in the world-
Coca Cola, Diet Coke, Sprite and Fanta. Such strong brands have
allowed the company to vary with their products such as Vanilla
Coke and Coke with Lemon to name a few. Being a very
recognized global brand, the company can penetrate new
markets and consolidate existing ones.
Weaknesses
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Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer. Coca-Cola India
claims a 58 per cent share of the soft drinks market; this includes a 42
per cent share of the cola market. Other products account for 16 per
cent market share, chiefly led by Limca. The company appointed
50,000 new outlets in the first two months of this year, as part of its
plans to cover one lakh outlets for the coming summer season and
this also covered 3,500 new villages. In Bangalore, Coca-Cola
amounts for 74% of the beverage market.
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100
The Company can come up with new products which are not
manufactured abroad, like Maaza etc and export them to foreign
nations. It can come up with strategies to eliminate apprehension
from the minds of the people towards the Coke products produced in
India so that there will be a considerable amount of exports and it is
yet another opportunity to broaden future prospects and cater to the
global markets rather than just domestic market.
Threats
There is a substitute threat in the form of Pepsi, Mirinda, 7-UP to
name a few. Iced Tea, Coconut Water are also considerable threats
to Coca Cola because they are more healthier options when
compared to Coca Cola’s products.
As India is developing at a fast pace, the per capita income has
increased over the years and a majority of the people are educated,
the export levels have gone high. People understand trade to a large
extent and the demand for foreign goods has increased over the
years. If consumers shift onto imported beverages rather than have
beverages manufactured within the country, it could pose a threat
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Questionnaire
1. Do you like soft drinks?
A. Yes
B. No
A. Never
B. Rarely
C. Often
D. Always
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B. Work
C. Party
D. Pub
E. Other
A. Orange
B. Lime
C. Cola
A. Coke
B. Pepsi
6. Which brand always comes to your mind when you think of having a
soft drink?
Bibliography
Mr. Vishal Gupta - General Sales Manager, who helped
me a lot throughout this project.
Internet:
www.coca-colaindia.com
www.scribd.com
www.google.com
Magazines:
Forbes
India Today
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Thank You,
K EVIN
KOHLI
BBA-III SEMESTER