Summer Internship Project-Final Draft

Summer Internship Project
[Type text]
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
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.
With the bubbles making the difference, Coca-Cola was

registered as a trademark in 1887 and by 1895, was being
sold in every state and territory in the United States. In
1899, it franchised its bottling operations in the U.S.,
growing quickly to reach 370 franchisees by 1910.
Headquartered in Atlanta with divisions and local
operations in over 200 countries worldwide, Coca-Cola
generated more than 70% of its income outside the
United States by 2003.
INTERNATIONAL EXPANSION
4
Coke’s first international bottling plants opened in 1906

in Canada, Cuba, and Panama. By the end of the 1920’s
Coca-Cola was bottled in twenty-seven countries
throughout the world and available in fifty-one more. In
spite of this reach, volume was low, quality inconsistent,
and effective advertising a challenge with language,
culture, and government regulation all serving as
barriers. Former CEO Robert Woodruff’s insistence that
Coca-Cola wouldn’t “suffer the stigma of being an
intrusive American product,” and instead would use local
bottles, caps, machinery, trucks, and personnel
contributed to Coke’s challenges as well with a lack of
standard processes and training degrading quality.
Coca-Cola continued working for over 80 years on

Woodruff’s goal: to make Coke available wherever and
whenever consumers wanted it, “in arm’s reach of
desire.”The Second World War proved to be the stimulus
Coca-Cola needed to build effective capabilities around
the world and achieve dominant global market share.
Woodruff’s patriotic commitment “that every man in
uniform gets a bottle of Coca-Cola for five cents,
wherever he is and at whatever cost to our company”
was more than just great public relations. As a result of
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.
TURN OF THE CENTURY GROWTH

IMPERATIVE
The 1990’s brought a slowdown in sales growth for the
Carbonated Soft Drink (CSD) industry in the United
States, achieving only 0.2% growth by 2000 (just under
10 billion cases) in contrast to the 5-7% annual growth
experienced during the 1980’s. While per capita
consumption throughout the world was a fraction of the
United States’, major beverage companies clearly had to
look elsewhere for the growth their shareholders
demanded. The looming opportunity for twenty-first
century was in the world’s developing markets with their
rapidly growing middle class populations.
Bottling History
6
In a candy store in Vicksburg, Mississippi, brisk sales of

the new fountain beverage called Coca-Cola impressed
the store's owner, Joseph A. Biedenharn. He began
bottling Coca-Cola to sell, using a common glass bottle
called a Hutchinson. Biedenharn sent a case to Asa
Griggs Candler, who owned the Company. Candler
thanked him but took no action. One of his nephews
already had urged that Coca-Cola be bottled, but
Candler focused on fountain sales.
Year 1899: The first bottling

agreement
Two young attorneys from Chattanooga, Tennessee

believed they could build a business around bottling
Coca-Cola. In a meeting with Candler, Benjamin F.
Thomas and Joseph B. Whitehead obtained exclusive
rights to bottle Coca- Cola across most of the United
States for a sum of one dollar. A third Chattanooga
lawyer, John T. Lupton, soon joined their venture.
Years
7 1900-1909: Rapid growth
The three pioneer bottlers divided the country into

territories and sold bottling rights to local entrepreneurs.
Their efforts were boosted by major progress in bottling
technology, which improved efficiency and product
quality. By 1909, nearly 400 Coca-Cola bottling plants
were operating, most of them family-owned businesses.
Some were open only during hot-weather months when
demand was high.
Year 1916: Birth of the Contour Bottle
Bottlers worried that Coca-Cola's straight-sided bottle

was easily confused with imitators. A group representing
the Company and bottlers asked glass manufacturers to
offer ideas for a distinctive bottle. A design from the
Root Glass Company of Terre Haute, Indiana won
enthusiastic approval. The Contour Bottle became one
of the few packages ever granted trademark status by
the U.S. Patent Office. Today, it is one of the most
recognized icons in the world.
In8 the 1920s: Bottling overtakes

fountain sales
As the 1920s dawned; more than 1,000 Coca-Cola

bottlers were operating in the U.S. Their ideas and zeal
fueled steady growth. Six-bottle cartons were a huge hit
starting in 1923. A few years later, open-top metal
coolers became the forerunners of automated vending
machines. By the end of the 1920s, bottle sales of Coca-
Cola exceeded fountain sales.
In the 1920s and 1930s: International

expansion
Led by Robert W. Woodruff, chief executive officer and

chairman of the Board, the Company began a major
push to establish bottling operations outside the U.S.
Plants were opened in France, Guatemala, Honduras,
Mexico, Belgium, Italy and South Africa. By the time
World War II began, Coca-Cola was being bottled in 44
countries.
9
In the 1940s: Post-war growth
During the war, 64 bottling plants were set up around

the world to supply the troops. This followed an urgent
request for bottling equipment and materials from
General Eisenhower's base in North Africa. Many of
these war-time plants were later converted to civilian
use, permanently enlarging the bottling system and
accelerating the growth of the Company's worldwide
business.
In the 1950s: Packaging innovations
For the first time, consumers had choices of Coca-Cola

package size and type-the traditional 6.5 ounce Contour
Bottle, or larger servings including 10, 12 and 26 ounce
versions. Cans were also introduced, becoming generally
available in 1960.
In the 1960s: Introduction of new

brands
Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in

the 1960s. Today scores of other brands are offered to
meet
10 consumer preferences in local markets around the
world.
In the 1970s and 1980s: Consolidation

to serve customers
Advancement in technology led to global economy,

retail customers of The Coca-Cola Company merged and
evolved into international mega chains. Such customers
required a new approach. In response, many small and
medium-size bottlers consolidated to better serve giant
international customers. The Company encouraged and
invested in a number of bottler consolidations to assure
that its largest bottling partners would have capacity to
lead the system in working with global retailers.
In the 1990s: New and growing markets
Political and economic changes opened vast markets

that were closed or underdeveloped for decades. After
the fall of the Berlin Wall, the Company invested heavily
to build plants in Eastern Europe. As the century closed,
more than $1.5 billion was committed to new bottling
facilities in Africa.
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.
Indian History
12
India is home to one of the most ancient cultures in the

world dating back over 5000 years. At the beginning of
the twenty-first century, twenty-six different languages
were spoken across India, 30% of the population knew
English, and greater than 40% were illiterate. At this
time, the nation was in the midst of great transition and
the dichotomy between the old India and the new were
stark. Remnants of the caste system existed alongside
the world’s top engineering schools and growing
metropolises as the historically agricultural economy
shifted into the services sector. In the process, India had
created the world’s largest middle class, second only to
China.
In the decades that followed independence, self-reliance

was taken to the extreme as many Indians believed that
economic independence was necessary to be truly
independent. As a result, the economy was increasingly
regulated and many sectors were restricted to the public
sector. This movement reached its peak in 1977 when
the Janta party government came to power and Coca-
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.
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.
From 1993 to 2003, Coca-Cola invested more than US$1

billion in India, making it one of the country’s top
international investors. By 2003, Coca-Cola India had
won the prestigious Woodruf Cup from among 22
divisions of the Company based on three broad
parameters of volume, profitability, and quality. Coca-
Cola India achieved 39% volume growth in 2002 while
the industry grew 23% nationally and the Company
reached breakeven profitability in the region for the first
time. Encouraged by its 2002 performance, Coca-Cola
India announced plans to double its capacity at an
investment of $125 million (Rs. 750 crore) between
September 2002 and March 2003.
Coca-Cola India produced its beverages with 7,000 local

employees at its twenty-seven wholly-owned bottling
operations supplemented by seventeen franchisee-
owned bottling operations and a network of twenty-nine
contract-packers to manufacture a range of products for
the15company. The complete manufacturing process had

a documented quality control and assurance program
including over 400 tests performed throughout the
process.
The complexity of the consumer soft drink market

demanded a distribution process to support 700,000
retail outlets serviced by a fleet that includes 10-ton
trucks, open-bay three wheelers, and trademarked
tricycles and pushcarts that were used to navigate the
narrow alleyways of the cities. In addition to its own
employees, Coke indirectly created employment for
another 125,000 Indians through its procurement,
supply, and distribution networks.
Sanjiv Gupta, President and CEO of Coca-Cola India,

joined Coke in 1997 as vice President, Marketing and was
instrumental to the company’s success in developing a
brand relevant to the Indian consumer and in tapping
India’s vast rural market potential. Following his
marketing responsibilities, Gupta served as Head of
Operations for Company-owned bottling operations and
then as Deputy President. Seen as the driving force
behind recent successful forays into packaged drinking
water, powdered drinks, and ready-to-serve tea and
coffee,
16 Gupta and his marketing prowess were critical to
the continued growth of the Company.
THE INDIAN BEVERAGE MARKET

India’s one billion people, growing middle class, and low
per capita consumption of soft drinks made it a highly
contested prize in the global CSD market in the early
twenty-first century. Ten percent of the country’s
population lived in urban areas or large cities and drank
ten bottles of soda per year while the vast remainder
lived in rural areas, villages, and small towns where
annual per capita consumption was less than four
bottles. Coke and Pepsi dominated the market and
together had a consolidated market share above 95%.
While soft drinks were once considered products only for
the affluent, by 2003 91% of sales were made to the
lower, middle and upper middle classes. Soft drink sales
in India grew 76% between 1998 and 2002, from 5,670
million bottles to over 10,000 million and were expected
to grow at least 10% per year through 2012. In spite of
this growth, annual per capita consumption was only 6
bottles
17 versus 17 in Pakistan, 73 in Thailand, 173 in the
Philippines and 800 in the United States.
With its large population and low consumption, the rural

market represented a significant opportunity for
penetration and a critical battleground for market
dominance. In 2001, Coca-Cola recognized that to
compete with traditional refreshments including lemon
water, green coconut water, fruit juices, tea, and lassi,
competitive pricing was essential. In response, Coke
launched a smaller bottle priced at almost 50% of the
traditional package.
Coca-Cola India-
18
About the Company

Coca-Cola, the corporation nourishing the global
community with the world’s largest selling soft drink
concentrates since 1886, returned to India in 1993 after a 16
year hiatus, giving a new thumbs up to the Indian soft drink
market. In the same year, the Company took over
ownership of the nation’s top soft-drink brand and bottling
network. It’s no wonder their brands have assumed an
iconic status in the minds of the world’s consumers.
A Healthy Growth to the Indian Economy
Coca-Cola India has made significant investments to build

and continually consolidate its business in the country,
including new production facilities, waste water treatment
plants, distribution systems, and marketing channels.
Coca-Cola India is among the country’s top international
investors, having invested more than US$ 1 billion in India in
the19first decade, and further pledged another US$100

million in 2003 for its operations.
A Pure Commitment to the Indian Economy

The Company has shaken up the Indian carbonated drinks
market greatly, giving consumers the pleasure of world-
class drinks to fill up their hydration, refreshment, and
nutrition needs. It has also been instrumental in giving an
exponential growth to the country’s job listings.
Creating Enormous Job Opportunities

With virtually all the goods and services required to produce
and market Coca-Cola being made in India, the business
system of the Company directly employs approximately
6,000 people, and indirectly creates employment for more
than 125,000 people in related industries through its vast
procurement, supply, and distribution system.
The Indian operations comprises of 50 bottling operations,
25 owned by the Company, with another 25 being owned
by franchisees. That apart, a network of 21 contract packers
manufactures a range of products for the Company.
On20the distribution front, 10-tonne trucks – open bay three-

wheelers that can navigate the narrow alleyways of Indian
cities – constantly keep our brands available in every nook
and corner of the country’s remotest areas.
VISION AND VALUES OF THE

COMPANY
Coca-Cola re-entered India in 1993. The vision of the

company is to lead beverage revolution in the world and
provide it’s consumer quality beverages at affordable price.
As on June 2007, Company has 65 manufacturing locations
across 18 states of the country
The company has one single environmental system, eKO
system, implemented at all its operations across the world.
The eKO system is a tool that integrates environment
management with business planning cycle.
The eKO system primarily comprises of two main facets
namely:
Environment
Occupational Safety and Health (OSH)
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
Our commitment to protecting and preserving the

environment extends throughout our organization. We
believe that having effective environmental management
systems requires the involvement of employees at all
levels. Our officers, managers and employees assume
responsibility for daily implementation of our
environmental management system.
Business Planning
•Operations
22 plan environmental management activities
through annual business planning.
•Top management periodically reviews the progress on
implementation of environmental projects.
Operations Personnel
•Dedicated environmental team at Corporate.

•Each plant designates a plant environmental
coordinator.
•Operations management provides written descriptions
of roles and responsibilities for environmental
coordinators, and evaluates their performance annually.
Operations Support
•Operations management provides training to help

personnel effectively implement environment
management system.
•Individuals with operational environmental
responsibility regularly improve their environmental
knowledge and expertise by participating in users,
seminars, meetings and other programs.
23
Company Support
•The Company develops training programs to address

system wide environmental topics and provides guidance
on implementation.
•The Company works with our bottling partners to help
them implement, at a minimum, The Coca-Cola
eKOsystem or an equivalent environmental management
system.
Compliance
Our commitment to the environment extends beyond

compliance. We are determined to integrate sound
environmental practices into our daily business
operations. Even in the absence of specific regulatory
requirements, we operate in an environmentally
responsible manner in accordance with the
environmental requirements of The Coca-Cola
Company.
Legal Requirements
Operations management is responsible for ensuring

24
compliance with applicable environmental legal
requirements.
•In absence of local environmental regulations, the
company follows it's global standard on environment
management, eKO system. Example include carrying out
Environmental Due Diligence prior to acquiring, selling
or leasing real estate.
Wastewater Management
The company operations are designed to minimize

wastewater generation through implementation of
"REDUCE" , "REUSE" and "RECYCLING" policy.
The wastewater generated at each manufacturing

location is treated as per local State Pollution Control
Board (SPCB) requirement and company standards. The
wastewater treatment plants are designed to comply
with the company standards as well as the local SPCB
standards.
As per company policy, wastewater treatment

operations are required to be equipped with fish pond to
demonstrate support of aquatic life in company's treated

25
wastewater.
Environmental Due Diligence
•Operations conduct environmental due diligence

assessments prior to acquiring, selling or leasing real
estate.
•The Company conducts due-diligence assessments of
Company-led real estate transactions.
Accountability
We are accountable for our actions. The Coca-Cola

Company conducts audits of its environmental
performance and practices, documents the findings and
takes necessary improvement actions. We are
committed to continuously improving our environmental
performance.
Environmental, Occupational Safety & Health(EOSH)

Audits
•The Company's corporate function conducts EOSH

26
audits of all bottling operations (both company owned as
well as franchise operations) identified by Corporate
Legal at regular intervals.
•Local Company management (i.e., Divisions/Regions)
conducts internal EOSH audits periodically.
•Operations establish procedures to regularly confirm
compliance with local regulatory standards and
requirements of The Coca-Cola eKOsystem.
Informing Stakeholders
 The Company establishes mechanisms to communicate

effectively with employees, consumers, governments,
shareowners and other stakeholders on environmental
performance, including environmental reporting.
 The Company, in conjunction with local operations as
appropriate, communicates with stakeholders on
environmental performance.
ASSURANCE & CONTROL-

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.
PROMISE OF THE COMPANY-

 The Symbol of Quality
 Customer and Consumer
Satisfaction
 Responsible Citizen of
28 the World
The basic propositions of our business are simple, solid and

timeless. When we bring refreshment, value, joy fun to our
stakeholders, then we successfully nurture and protect our
brands, particularly Coca-Cola. That is key to fulfilling our
ultimate obligation to provide consistently attractive
returns to the owners to our business.
ENVIRONMENT POLICY
We29at Coca-Cola India are in the business of beverages that

refresh people. We will carry out our operations in ways
that Protect, Preserve and Enhance the Environment we
work in. Our activities are guided by Coca-Cola eKOsystem,
which provides a framework to transform this principle in
actions.
Towards this objective, it shall endeavor to:
Establish, maintain and operate facilities to comply with
all applicable Environmental Safety and Health laws,
Statutes and Consents.
Formulating sound environmental objectives and targets

and integrate a continuous process review in all essential
elements of corporate management.
Conservation of natural resources specifically in water,

energy and Fuel by continually improving its usage and
reducing wastage.
Working as catalyst to enhance collection of post

consumer PET bottles through awareness programs and
synergizing relevant agencies for getting better pricing to
the consumer.
30
Seek Co-operation with Public, Private and
Governmental Organizations in identifying solutions to
relevant environmental issues.
Advertising initiatives are to be critically evaluated while

advertising in Eco-sensitive areas. Do not put
advertisement on Historical Monuments, Religious,
Political Buildings & Structures and other specially
protected and sensitive areas.
Using cooling equipment with environmentally friendly

technologies.
Managing fleet operations in a manner to minimize

environmental impacts by ensuring good maintenance,
improving & tracking fuel efficiency and effectively
managing wastes.
Ensuring Procurement policies that consider the

environmental impact of packaging materials and all
direct and indirect process aids used within the
operation.
Ensuring
31 all operations implement eKO Management
System and requirements under ISO 14001 before
December 2004.
This policy has been communicated to all associates of

Coca-Cola India to ensure compliance and shall be made
available to public and interested parties on demand.
Manifesto for growth
VALUES:
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:
To Refresh the World- In body, mind, and spirit
To Inspire Moments of Optimism- Through our brands

and our actions
To Create Value and Make a Difference- Everywhere we
engage.
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.
PARTNERS: Nurturing a winning network of partners

and building mutual loyalty.
PLANET: Being a responsible global citizen that makes a

difference.
34
Competitors to HCCBPL
The35 competitors to the products of the company mainly

lie in the nonalcoholic beverage industry consisting of
juices and soft drinks.
The key competitors in the industry are as follows:
PepsiCo: The PepsiCo challenge, to keep up with
archrival, the Coca-Cola Company never ends for the
World's # 2, carbonated soft- drink maker. The
company's soft drinks include Pepsi, Mountain Dew, and
Slice. Cola is not the company's only beverage; PepsiCo
sells Tropicana orange juice brands, Gatorade sports
drink, and Aquafina water. PepsiCo also sells Dole juices
and Lipton ready-to-drink tea.
PepsiCo and Coca-Cola hold together, a market share of

95% out of which 60.8% is held by Coca-Cola and the
rest belongs to Pepsi.
Nestlé: Nestle does not give that tough a competition to

Coca-Cola as it mainly deals with milk products, Baby
foods and Chocolates. But the iced tea that is Nestea
which has been introduced into the market by Nestle
provides a considerable amount of competition to the
products of the Company. Iced tea is one of the closest
substitutes to the Colas as it is a thirst quencher and it is
healthier when compared to fizz drinks. The flavored
milk products also have become substitutes to the
products
36 of the company due to growing health
awareness among people.
Dabur: Dabur in India, is one of the most trusted brands

as it has been operating ever since times and people
have laid all their trust in the Company and the products
of the Company. Apart from food products, Dabur has
introduced into the market Real Juice which is packaged
fresh fruit juice. These products give a strong
competition to Maaza and the latest product Minute
Maid Pulpy Orange.
Coke v/s Pepsi

37
The post-liberalization period in India saw the

comeback of cola but Pepsi had already beaten Coca-
Cola to the punch, creatively entering the market in
the 1980’s in advance of liberalization by way of a joint
venture. As early as 1985, Pepsi tried to gain entry into
India and finally succeeded with the Pepsi Foods Limited
Project in 1988, as a JV of PepsiCo, Punjab government-
owned Punjab Agro Industrial Corporation (PAIC), and
Voltas India Limited. Pepsi was marketed and sold as
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.
While the joint venture was only marginally successful in

its own right, it allowed Pepsi to gain precious early
experience with the Indian market and also served as
an introduction of the Pepsi brand to the Indian
consumer such that it was well-poised to reap the
benefits when liberalization came. Though Coke
benefited from Pepsi creating demand and developing
the market, Pepsi’s head-start gave Coke a
disadvantage in the mind of the consumer. Pepsi’s
appeal focused on youth and when Coke entered India in
1993 and approached the market selling an American
way of life, it failed to resonate as expected.
The Pepsi v/s Coke story represents a small twist, in that

the logos of both the companies are extremely strong
and use colors and fonts intelligently. It is the intense
rivalry between the two and the changes that their logos
have undergone over the past century that will be
highlighted here.
Coca
39 Cola:
Coca-Cola was created in 1886 by John Pemberton, a

pharmacist in Atlanta, Georgia (U.S.A) who sold the
syrup mixed with fountain water as a potion for mental
and physical disorders. The formula changed hands
three times before Asa D. Candler added carbonation
and by 2003, Coca-Cola, with more than 400 widely
recognized beverage brands in its portfolio and local
operations in over 200 countries worldwide, was the
world’s largest manufacturer, marketer, and distributor
of non-alcoholic beverage concentrates and syrups.
The Coca-Cola logo, like the product itself, is rated

among the most recognized logos and brands in the
world. The first Coca-Cola logo was created by John
Pemberton’s partner and bookkeeper, Frank Mason
Robinson, in 1885. Thinking that the two Cs would look
well in advertising, it was Robinson who came up with
the name Coca Cola and chose the logo’s distinctive
cursive script. The typeface used, known as Spenserian
script, was developed in the mid 19th century and was
the dominant form of formal handwriting in the United
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
fast-food
41 restaurants were spun off into Tricon Global
Restaurants, now Yum! Brands, Inc.
Caleb Bradham of New Bern, North Carolina was a

pharmacist. He had a soda fountain in his drugstore,
where he served his customers refreshing drinks, that he
created himself. His most popular beverage was
something he called “Brad’s drink” made of carbonated
water, sugar, vanilla, rare oils, pepsin and cola
nuts.”Brad’s drink”, created in the summer of 1893, was
later renamed Pepsi Cola in 1898 after the pepsin and
cola nuts used in the recipe. The new name was
trademarked on June 16th, 1903. Bradham’s neighbor,
an artist designed the first Pepsi logo.
After seventeen years of success, Caleb Bradham lost

Pepsi Cola when he gambled on the fluctuations of sugar
prices during World War I. In 1931, Pepsi Cola was
bought by the Loft Candy Company Loft president,
Charles G. Guth who reformulated the popular soft
drink. Guth struggled to make a success of Pepsi and
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.
Rivalry between Pepsi & Coca Cola:

The two companies and their principal products are
complete substitutes for each other. The companies,
more or less, have about an equal percentage share of
the market. The squabbling is mainly in the arena of
advertising and logo design.
From the beginning, Coke understood the importance of
branding and the creation of a distinct personality whilst
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.
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
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.
From 1993 to 2003, Coca-Cola invested more than US$1

billion in India, making it one of the country’s top
international investors.
Brands of Coca Cola

COCA COLA
THUMS-UP
SPRITE
FANTA
LIMCA
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.
CREATED IN ATLANTA, GEORGIA, BY DR. JOHN S.

PEMBERTON, COCA-COLA WAS FIRST OFFERED AS A
FOUNTAIN BEVERAGE BY MIXING COCA-COLA SYRUP WITH
CARBONATED WATER. COCA-COLA WAS INTRODUCED IN
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.
COCA-COLA MIGHT OWE ITS ORIGINS TO THE UNITED

STATES, BUT ITS POPULARITY HAS MADE IT TRULY
UNIVERSAL. TODAY, YOU CAN FIND COCA-COLA IN
VIRTUALLY EVERY PART OF THE WORLD.
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.
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.
THE SOFT DRINK WAS FIRST SOLD TO THE PUBLIC AT THE

SODA FOUNTAIN IN JACOB'S PHARMACY IN ATLANTA ON
MAY 8, 1886.
ABOUT NINE SERVINGS OF THE SOFT DRINK WERE SOLD
EACH DAY. SALES FOR THAT FIRST YEAR ADDED UP TO A
TOTAL OF ABOUT $50. THE FUNNY THING WAS THAT IT
COST JOHN PEMBERTON OVER $70 IN EXPANSES, SO THE
FIRST YEAR OF SALES WERE A LOSS.
UNTIL 1905, THE SOFT DRINK, MARKETED AS A TONIC,

CONTAINED EXTRACTS OF COCAINE AS WELL AS THE
CAFFEINE-RICH KOLA NUT.
DIFFERENT PACKAGES
CAN – 330ML
49
PET BOTTLE-500ML, 1.5LTR, 2LTR, 2.5 LTR & 500ML+100ML
FOUNTAIN-VARIOUS SIZES
50
GLASS-200ML, 300ML, 500ML, 1LTR
THUMS-UP

THUMS UP IS A CARBONATED SOFT DRINK (COLA) POPULAR
AND LARGEST SELLING BRAND IN INDIA, WHERE ITS BOLD,
RED THUMBS UP LOGO IS COMMON. IT IS SIMILAR IN
FLAVOUR TO OTHER COLAS BUT HAS A UNIQUE TASTE
REMINISCENT OF BETEL NUT.
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
PET BOTTLE- 500ML, 1.5LTR, 2LTR, 2.25LTR,

500ML+100ML
FOUNTAIN
52 - VARIOUS SIZES
GLASS- 200ML, 300ML, 500ML, 1LTR
CAN AND GLASS BOTTLES(RETURNABLE ONE’S OF 200ML AND

300ML) OF THUMS-UP ARE MOST PREFFERED
SPRITE
INTRODUCED IN 1961, SPRITE IS THE WORLD'S LEADING
LEMON-LIME FLAVORED SOFT DRINK. SPRITE IS SOLD IN
MORE THAN 190 COUNTRIES AND RANKS AS THE NO.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
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
RGB (RETURNABLE GLASS BOTTLE)

54 200ML, 300ML
PET-
55 500ML, 600ML, 1.25LTR, 1.5LTR, 2LTR, 2.25LTR
CAN- 330ML
FOUNTAIN- VARIOUS SIZES

FANTA
56

AVAILABLE IN EUROPE SINCE THE 1940S, FANTA WAS
INTRODUCED IN THE UNITED STATES IN 1960. CONSUMERS
AROUND THE WORLD, PARTICULARLY TEENS, FONDLY
ASSOCIATE FANTA WITH HAPPINESS AND SPECIAL TIMES
WITH FRIENDS AND FAMILY. THIS POSITIVE IMAGERY IS
DRIVEN BY THE BRAND'S FUN, PLAYFUL PERSONALITY,
WHICH GOES HAND IN HAND WITH ITS BRIGHT COLOR, BOLD
FRUIT TASTE AND TINGLY CARBONATION. OVER THE YEARS
IT HAS NOW OCCUPIED A STRONG MARKETPLACE AND IS
IDENTIFIED WITH THE FUN, YOUNG PEOPLE OR IS KNOWN AS
THE FUN CATALYST.
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
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
LIMCA
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.
IN 1992, WHEN THE INDIAN GOVERNMENT ALLOWED COCA-

COLA TO RETURN FOR OPERATIONS, AT THE SAME TIME AS
IT ADMITTED PEPSI FOR THE FIRST TIME, COCA-COLA
BOUGHT LOCAL SOFT-DRINK (SODA) BRANDS INCLUDING
LIMCA.
APART FROM PRODUCING BEVERAGE DRINKS, LIMCA ALSO
RELEASES AN INDIAN VERSION OF THE GUINNESS BOOK OF
WORLD RECORDS KNOWN AS ‘LIMCA BOOK OF RECORDS’.
DIFFERENT
59 PACKAGING
CAN-330ML
PET-500ML, 500ML+100ML FREE, 1.25LTR, 1.5LTR, 2LTR,
2.5LTR
GLASS-200ML, 300ML
M60
AAZA
DRINK TYPE: JUICE/JUICE DRINK

THE HISTORY OF MAAZA BEGINS IN THE LATE FIFTIES IN
INDIA, WHERE THE IDEA CAME ABOUT TO MAKE JUICE OUT
OF MANGO PUREE. A NEW DRINK WAS BORN, MAAZA
MANGO! LOVED FOR IT’S TASTE, QUALITY AND HANDY
GLASS BOTTLE MAAZA BECAME VERY POPULAR!
IN THE EARLY SEVENTIES MAAZA’S SUCCESS STORY SPREAD

ACROSS THE BORDERS.
PRODUCTION, DISTRIBUTION AND MARKETING STARTED IN

THE MIDDLE EAST AND SINGAPORE, FOLLOWED BY
AMERICA AND EUROPE IN THE EARLY EIGHTIES. TODAY
MAAZA CAN TRULY BE CALLED A WORLD BRAND.
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
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-
GEORGIA
62
INTRODUCED IN 2004, THE GEORGIA GOLD RANGE OF TEA

AND COFFEE BEVERAGES INCLUDES FRESHLY GROUND
ROASTED COFFEE, CARDAMOM TEA, HOT CHOCOLATE
DRINK, ICED TEAS AND COLD COFFEES.IT IS AVAILABLE IN
RESTAURANTS, CINEMAS, MALLS, AIRPORTS AND IN ALL
CORPORATES ACROSS ALL MAJOR METROS IN INDIA.
HOT BEVERAGES INCLUDE-
ESPRESSO
AMERICANO
CAPPUCCINO
CAFFE LATTE
MOCHACINO
HOT CHOCOLATE
CARDAMOM TEA
COLD BEVERAGES INCLUDE-
ICED TEAS
COLD COFFEE
KINLEY
63
Brand Type: Mineral Water

Kinley is used as a carbonated drink in the west and
some parts of Europe but in India it is a brand that
guarantees safe mineral water to drink.
Different Packaging-
500ml, 1ltr
MINUTE
64 MAID PULPY ORANGE
DRINK TYPE: JUICE

THE HISTORY OF THE MINUTE MAID BRAND GOES BACK AS FAR AS
1945 WHEN THE FLORIDA FOODS CORPORATION DEVELOPED
ORANGE JUICE POWDER.
THE NAME ORIGINATED BECAUSE THE ORANGE JUICE USING THE
POWDER COULD BE MADE IN A MINUTE, HENCE THE NAME MINUTE
MAID.
MINUTE MAID WAS LAUNCHED IN INDIA IN THE YEAR 2007
STARTING WITH SOUTHERN INDIA IN A AIM TO STRENGTHEN COCA
COLA’S STRENGTH IN THE JUICE DRINK CATEGORY.
DIFFERENT PACKAGING:
400ML, 1 LTR, 1.25 LTR
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
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
67 Stockholders' Equity
Misc Stocks Options Warrants - - -

Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 880,000 880,000 880,000
Retained Earnings 41,537,000 38,513,000 36,235,000
Treasury Stock (25,398,000) (24,213,000) (23,375,000)
Capital Surplus 8,537,000 7,966,000 7,378,000
Other Stockholder Equity (757,000) (2,674,000) 626,000
Total Stockholder Equity 24,799,000 20,472,000 21,744,000
Net Tangible Assets $11,971,000 $7,967,000 $9,525,000
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
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
Cash Flow of Coca Cola Company

Past 3 years:
Net Income 6,824,000 5,807,000 5,981,000
69 Operating Activities, Cash Flows Provided By or Used In

Depreciation 1,236,000 1,228,000 1,163,000
Adjustments To Net Income 608,000 1,224,000 -
Changes In Accounts Receivables - 148,000 (406,000)
Changes In Liabilities - (734,000) 914,000
Changes In Inventories - (165,000) (258,000)
Changes In Other Operating Activities (564,000) 63,000 (244,000)
Total Cash Flow From Operating Activities 8,186,000 7,571,000 7,150,000
Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures (1,993,000) (1,968,000) (1,648,000)
Investments (2,152,000) (240,000) 349,000
Other Cashflows from Investing Activities (4,000) (155,000) (5,420,000)
Total Cash Flows From Investing Activities (4,149,000) (2,363,000) (6,719,000)
Financing Activities, Cash Flows Provided By or Used In

Dividends Paid (3,800,000) (3,521,000) (3,149,000)
Sale Purchase of Stock (856,000) (493,000) (219,000)
Net Borrowings 2,363,000 29,000 4,341,000
Other Cash Flows from Financing Activities - - -
Total Cash Flows From Financing Activities (2,293,000) (3,985,000) 973,000
Effect Of Exchange Rate Changes 576,000 (615,000) 249,000
Change In Cash and Cash Equivalents $2,320,000 $608,000 $1,653,000
Past 4 quarters:
Net Income 1,543,000 1,873,000 2,049,000 1,359,000
Operating Activities, Cash Flows Provided By or Used In

Depreciation 331,000 320,000 302,000 283,000
Adjustments To Net Income 565,000 (23,000) (175,000) 241,000
Changes In Accounts Receivables - - - -

70 Changes In Liabilities - - - -
Changes In Inventories - - - -
Changes In Other Operating Activities (573,000) 406,000 613,000 (1,010,000)
Total Cash Flow From Operating
1,916,000 2,608,000 2,789,000 873,000
Activities
Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures (594,000) (419,000) (513,000) (467,000)
Investments (2,132,000) (3,000) (11,000) (6,000)
Other Cashflows from Investing Activities 137,000 26,000 (41,000) (126,000)
Total Cash Flows From Investing
(2,589,000) (396,000) (565,000) (599,000)
Activities
Financing Activities, Cash Flows Provided By or Used In

Dividends Paid (950,000) (951,000) (949,000) (950,000)
Sale Purchase of Stock (1,081,000) 155,000 60,000 10,000
Net Borrowings 622,000 (230,000) (786,000) 2,757,000
Other Cash Flows from Financing Activities - - - -
Total Cash Flows From Financing (1,675,000
(1,409,000) (1,026,000) 1,817,000
Activities )
Effect Of Exchange Rate Changes 257,000 13,000 282,000 24,000
($1,825,000
Change In Cash and Cash Equivalents $1,199,000 $831,000 $2,115,000
)
Income Statement of Coca Cola

Company
Past 3 years:
Total Revenue 30,990,000 31,944,000 28,857,000
Cost of Revenue 11,088,000 11,374,000 10,406,000
Gross Profit 19,902,000 20,570,000 18,451,000

71
Operating Expenses
Research Development - - -
Selling General and Administrative 11,671,000 11,774,000 11,199,000
Non Recurring - 350,000 -
Others - - -
Total Operating Expenses - - -
Operating Income or Loss 8,231,000 8,446,000 7,252,000
Income from Continuing Operations

Total Other Income/Expenses Net 289,000 305,000 1,077,000
Earnings Before Interest And Taxes 9,301,000 7,877,000 8,329,000
Interest Expense 355,000 438,000 456,000
Income Before Tax 8,946,000 7,439,000 7,873,000
Income Tax Expense 2,040,000 1,632,000 1,892,000
Minority Interest (82,000) - -
Net Income From Continuing Ops 7,605,000 5,807,000 5,981,000
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income 6,824,000 5,807,000 5,981,000

Preferred Stock And Other Adjustments - - -
Net Income Applicable To Common Shares $6,824,000 $5,807,000 $5,981,000
Past 4 quarters:
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
Non Recurring - - - -
72 Others - - - -
Total Operating Expenses - - - -
Operating Income or Loss 1,780,000 2,150,000 2,438,000 1,863,000
Income from Continuing Operations

Total Other Income/Expenses Net 92,000 (227,000) 404,000 20,000
Earnings Before Interest And Taxes 2,044,000 2,532,000 2,825,000 1,900,000
Interest Expense 84,000 89,000 97,000 85,000
Income Before Tax 1,960,000 2,443,000 2,728,000 1,815,000
Income Tax Expense 382,000 523,000 679,000 456,000
Minority Interest (35,000) (47,000) - -
Net Income From Continuing Ops 2,324,000 1,873,000 2,049,000 1,359,000
Non-recurring Events
Discontinued Operations - - - -
Extraordinary Items - - - -
Effect Of Accounting Changes - - - -
Other Items - - - -
Net Income 1,543,000 1,873,000 2,049,000 1,359,000

Preferred Stock And Other Adjustments - 23,000 (12,000) (11,000)
Net Income Applicable To Common
$1,543,000 $1,896,000 $2,037,000 $1,348,000
Shares
Success factors:
Reaching out to the rural market

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.
Coca-Cola is seen as one of the founding fathers of the

modern day marketing model. They were among the
pioneers of advertising techniques and styles used to
capture an audience. They were also one of the first
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.”
The mantra to success is Innovate or Die.
Coca-Cola has been able to survive and grow in an ever-

changing market because of its ability to systematically
innovate and deliver new products. In the late 90s the
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.
2001 Coke Marketing

Strategy
Coca-Cola CEO Douglas Daft set the direction for the

next generation of success for his global brand with a
“Think local, act local” mantra. Recognizing that a single
global strategy or single global campaign wouldn’t work,
locally
76 relevant executions became an increasingly
important element of supporting Coke’s global brand
strategy.
In 2001, after almost a decade of lagging rival Pepsi in

the region, Coke India re-examined its approach in an
attempt to gain leadership in the Indian market and
capitalize on significant growth potential, particularly in
rural markets. The foundation of the new strategy
grounded brand positioning and marketing
communications in consumer insights, acknowledging
that urban versus rural India were two distinct markets
on a variety of important dimensions. The soft drink
category’s role in people’s lives, the degree of
differentiation between consumer segments and their
reasons for entering the category, and the degree to
which brands in the category projected different
perceptions to consumers were among the many
important differences between how urban and rural
consumers approached the market for refreshment.
In Rural Markets, where both the soft drink category

and individual brands were undeveloped, the task was
to broaden the brand positioning while in Urban
Markets, with higher category and brand development,
the77task was to narrow the brand positioning, focusing

on differentiation through offering unique and
compelling value. This lens, informed by consumer
insights, gave Coke direction on the tradeoff between
focus and breadth a brand needed in a given market and
made clear that to succeed in either segment, unique
marketing strategies were required in urban versus rural
India.
BRAND LOCALIZATION
STRATEGY: THE TWO INDIA’S
India A: “Life ho to aisi”
“India A,” the designation Coca-Cola gave to the market

segment including metropolitan areas and large towns,
represented 4% of the country’s population. This
segment sought social bonding as a need and responded
to aspirational messages, celebrating the benefits of
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.
India B: “Thanda Matlab Coca-Cola”
Coca-Cola India believed that the first brand to offer

communication targeted to the smaller towns would
own the rural market and went after that objective with
a comprehensive strategy. “India B” included small
towns and rural areas, comprising the other 96% of the
nation’s population. This segment’s primary need was
out-of-home thirst-quenching and the soft drink
category was undifferentiated in the minds of rural
consumers. Additionally, with an average Coke costing
Rs. 10 and an average day’s wages around Rs. 100, Coke
was perceived as a luxury that few could afford.
In an effort to make the price point of Coke within reach

of this high-potential market, Coca-Cola launched the
Accessibility Campaign, introducing a new 200ml bottle,
smaller than the traditional 300ml bottle found in urban
markets,
79 and concurrently cutting the price in half, to
Rs.5.
This pricing strategy closed the gap between Coke and

basic refreshments like lemonade and tea, making soft
drinks truly accessible for the first time. At the same
time, Coke invested in distribution infrastructure to
effectively serve a disbursed population and doubled the
number of retail outlets in rural areas from 80,000 in
2001 to 160,000 in 2003, increasing market
penetration from 13 to 25%.
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
Comprising 74% of the country's population, 41% of its

middle class, and 58% of its disposable income, the rural
market was an attractive target and it delivered results.
Coke experienced 37% growth in 2003 in the rural
areas versus the 24% growth seen in urban areas.
Driven by the launch of the new Rs. 5 product, per capita

consumption doubled between2001-2003.This market
accounted for 80% of India’s new Coke drinkers, 30%
of 2002 volume, and was expected to account for 50%
of the company’s sales in 2003.
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.
82
Now, the beverages of the US$31 billion multinational

are back on the shopping lists of Indian consumers, and
Coca-Cola India is reaping the rewards. At the end of last
year, its sales volume grew more than 30% and it turned
a profit for the first time since it returned to the country
in 1993 after a 16-year hiatus, according to Atul Singh,
who was appointed the firm's Delhi-based president and
CEO of Coca-Cola India and southwest Asia in 2005.
Much of last year's growth for Coca-Cola -- and its rival
PepsiCo -- came from urban and semi-urban markets,
but experts note that Coca-Cola's rural push helped it
consolidate its overall market leadership.
As in previous years, the tasks ahead for Singh and his

team are clear. One of the biggest challenges is
introducing a greater number of people to consuming
beverages in a ready-to-drink packaged form, he says.
That means getting its bottles of fizzy drinks to the right
place at the right time at the right price -- a tall order in a
country with such a vast hinterland like India.
Cold
83 Drinks, Hot Markets
The reality is that the consumers Singh covets most are

in hard-to-reach rural India. "Coca-Cola must realize that
the future of its drink will be determined in the
countryside because that is where the consumers are,"
says Z. John Zhang, a Wharton marketing professor.
"Today's farmer could be tomorrow's city resident; you
better capture that market quickly."
It's a similar scenario in China; a country that Zhang has

studied closely, which also has an enormous untapped
rural consumer market. Home-grown beverage
company Wahaha uses "a guerilla marketing strategy to
encircle the city from the countryside, knowing those
people will become city residents eventually," Zhang
says. "Wahaha also knows the rural markets are where
Coke is weak," helping its own beverages gain a bigger
share of China's soft drinks market than Coca-Cola's
Sprite and Coke, and PepsiCo's Pepsi.
As84in China, the dream of capturing rural consumers in

India is, of course, not Coca-Cola's alone. But as Coca-
Cola and its rivals know, India is a market that makes
neither distribution nor inventory management easy,
and is hugely diverse in terms of tastes and buying
power. Indeed, even established consumer-goods
companies in India have covered only about a tenth of
the country's 600,000 villages, according to Jagdeep
Kapoor, chairman and managing director of Samsika
Marketing Consultants, a brand marketing-services firm
in Mumbai. Kapoor in the past was head of marketing for
a number of popular drinks, including India's biggest cola
brand, Thums Up, before Coca-Cola bought it in 1993.
Depending on how you look at it, he adds, it's either
good news or bad news that "you have the whole rural
market up for grabs."
Consumer-goods experts agree that one reason why

Coca-Cola's India foray faltered after it re-entered the
country was that it did not pay enough attention to
refrigeration. In India, consumers -- urban or rural --
want a "cold drink" and not just a "soft drink," says
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."
The key to the turnaround, Singh says, is that Coca-Cola

India along with its bottlers ramped up its route-to-
market strategy. Part of that meant a greater focus on
refrigeration. In electricity-deficient areas, such as some
of the hinterland in Uttar Pradesh, it now provides shops
with coolers that operate with brine solution so its
products can stay chilled up to 12 hours without
electricity. In other places, it has trade agreements with
local ice makers.
Taking a New Route
As for distribution, Coca-Cola India has done what other

companies in the hinterland have done, and moved from
a centralized distribution model to a hub-and-spoke
approach, says CEO Singh. Rather than transporting
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.
Gowri Arun, principal consultant at RK Swamy BBDO, an

advertising agency in Mumbai that produces urban and
rural market indices, adds that although rural India's
population is three times larger than in urban areas, "the
market is not three times the size and is not
homogenous." The larger areas that companies have to
cover in rural India disproportionately increase logistics
costs, she says.
It wasn't just distribution and refrigeration issues that

caused Coca-Cola to stumble in India. The company also
erred in adopting the low price-point strategy that many
other foreign consumer-goods companies were using at
the time to sell their products in rural India. "People
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.
The High Cost of a Low Price
Yet about seven years ago, Coca-Cola set out to woo

rural consumers by halving the price of a 200-milliliter
(seven-ounce) bottle to Rs. 5 (11 cents). Rs. 5 is a
"psychological price point," according to Arun of RK
Swamy BBDO. A price greater than Rs. 5 means a
consumer has to "break a Rs. 10 note."
88
At the time, Coca-Cola claimed the low price spurred

sales. Today, a Coca-Cola spokesperson says, "The real
thought behind the 200-ml bottle is to get people in rural
India used to this packaged beverage."
But among the problems, according to Kapoor, was that

Coca-Cola advertised the lower price on billboards and in
print media. Indian retailers found themselves arguing
with customers, who wanted the drink for Rs. 5 and were
unwilling to pay the extra rupee for refrigeration, he
says.
Meanwhile, a price war erupted as rival PepsiCo matched

the Rs. 5 price. Both firms have since dropped the
strategy, however, and let prices for their 200-ml sodas
rise up to around Rs. 8, though the rivalry remains as
intense as ever: PepsiCo India grew its beverage business
more than 32% in 2009, its highest volume growth in
recent years, making it the fastest-growing beverage
company
89 in the country for the second consecutive year,
according to company marketing.
Yet Zhang, who has analyzed priced wars in China

extensively, says the Rs. 5 experience shouldn't make
Coca-Cola or other companies fear entering into price
wars in the future. Despite what many Western
companies believe, he says, a price war can be an
effective business strategy but must be managed well
and works best in fragmented markets in which
consumers are price sensitive.
In any case, there seems to be no easy way for Coca-Cola

to woo rural consumers with pricing strategies. "The
price barrier has definitely been a problem in rural India,"
concedes a spokesperson for Coca-Cola India. "Soft
drinks that come in a glass bottle have to be returned to
bottling plants, and no mechanism can provide such
drinks at a cheap cost due to freight charges. We are
now looking at alternative packaging and how to
organize distribution."
90
Nabankur Gupta helped develop the low-priced

Videocon brand of televisions and other white goods in
India before becoming CEO of Nobby Brand Architects,
a brand consulting firm in Mumbai. He argues in favor of
going to a 150-ml bottle to woo rural Indian consumers,
arguing that it is consistent with their drinking habits.
Lassi, India's popular yogurt drink, is usually consumed in
300-ml or 350-ml tumblers, but tea or soft drinks are
served in small glasses, he says. He notes that reducing
sizes has worked well for shampoo manufacturers
supplying India's rural and semi-urban markets with
small sachet packs.
Of Drinks and Dreams
The psychological impact of pricing is just one part of the

bigger basket of intangible considerations that MNCs
often struggle to manage in rural India. Another one is
the power of a brand's image, which might draw
consumers to buy one product while making them shun
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."
Foreign companies should be particularly mindful of

helping their brands appeal to the lifestyle aspirations of
up-and-coming Indians, says Wharton's Zhang. "Rural
customers aspire to the urban consumers' lifestyle," he
notes. "In China, the rural population is already sensitive
to the idea that they are not as good as city residents in
terms of quality of life. You don't want to treat them like
country bumpkins."
What's more, "rural" is a state of mind that can exist in

an urban metropolis, according to Gupta. "One of the
biggest rural markets in India is Mumbai -- the slums of
Dharavi," he says. For a consumer in the "ghetto market"
of Dharavi, a cold cola is an "aspiration" and a "status
symbol that tells his neighbor that he has arrived."
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."
At Coca-Cola, education initiatives have been more

focused on the retailers selling their sodas than on the
customers drinking them. In late 2008, Coca-Cola's
University on Wheels launched a nationwide training
program called Parivartan on 20-seater buses for mom-
and-pop retailers. So far, the program has covered more
than 30,000 retailers in cities including Agra, Ludhiana,
Chandigarh and Lucknow, with courses on such topics as
how to display products and improve inventory
management.
93 The aim is to train 100,000 retailers in the
next two years, according to a Coca-Cola spokesperson.
But Santosh Desai, managing director and CEO at Future

Brands, a brand consulting company in New Delhi, says
that while education is important -- particularly that of
retailers -- expectations need to be managed.
"Symbolically, it is both significant and valuable in
intent, but in terms of market building, it merely
scratches the surface," he says. "Training the retailer is a
great idea, but given the scale of India and its number of
villages, it will be an extremely long time before you get
any significant scale."
Neglecting Thums Up
There are thornier issues involving brand management

that Coca-Cola India has had to confront. One involves
its failed attempt to let the popular home-grown Thums
Up brand fade away in the mid-1990s so that its own
Coke brand could gain more market share. "Coca-Cola
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."
As Desai of Future Brands notes: "Thums Up is a brand

that refuses to die ... although Coca-Cola never intended
to let the brand live. There are huge pockets of
enthusiasm for it across the country, and it tends to
appeal to rural audiences more than other brands.
Where it is strong, it has a good rural profile."
With or without Thums Up, being the most visible soft

drink brand means Coca-Cola also attracts unwelcome
attention. In India, it continues to battle (along with
Pepsi) allegations that it has excessive pesticide content
in its soft drinks, and that it depletes and contaminates
groundwater resources. Coca-Cola made headlines yet
again in March, when it faced a US$47 million fine in the
southern state of Kerala for alleged groundwater
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
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.
Did you know these

facts about Coca Cola?
Coke was invented by a pharmacist named John
Pemberton as a medicine for headaches.
It is called Coca Cola because the original
ingredients consisted of Coca leaves and Kola seeds.
Wine was added instead of sugar.
Coca-Cola helped create the modern image of Santa
Claus
Coca-Cola was the first soft drink to be consumed in
space. That happened in 1985.
97 You can even use Coke as a cleaning liquid on rusty

pans and dirty toilets. It can also be used to remove
doors.
If you are unfortunate enough to get gum in your
hair rinse it with coca-cola and the gum will come
out easily!
Coke has traces of cocaine and the original version
contained alcohol!
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.
Growing bottled market.

98
Higher Income among people.
Export Potential.
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.
Being the largest manufacturer, distributor and marketer of non-

alcoholic beverages in the world, the company’s biggest strength is
probably its large scale of operations. Its products are sold in more
than 200 countries.
Weaknesses
The brands produced by the company are brands produced world

99
wide thereby making the export levels very low. In India, there
exists a major controversy concerning pesticides and other harmful
chemicals in bottled products including Coca-Cola. In 2003, the
Centre for Science and Environment (CSE), a non- governmental
organization in New Delhi, said aerated waters produced by soft
drinks manufacturers in India, including multinational giants
PepsiCo and Coca-Cola, contained toxins including lindane, DDT,
Malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system.
Therefore, people abroad, are apprehensive about Coca-Cola products

from India.
The Company’s operations are carried out on a small scale and

due to Government restrictions and ‘red-tapism’, the Company
finds it very difficult to invest in technological advancements and
achieve economies of scale.
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.
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.
Development of India as a whole has lead to an increase in the per

capita income thereby causing an increase in disposable income.
Unlike olden times, people now have the power of buying goods of
their choice without having to worry much about the flow of their
income. The beverage industry can take advantage of such a
situation and enhance their sales.
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
to the Indian beverage industry as a whole in turn affecting the sales

101
of the Company.
The rural market may be alluring but it is not without its problems:
Low per capita disposable incomes that is half the urban disposable
income; large number of daily wage earners, acute dependence on
the vagaries of the monsoon; seasonal consumption linked to
harvests and festivals and special occasions; poor roads; power
problems; and inaccessibility to conventional advertising media. All
these problems might lead to a slowdown in the demand for the
company’s products.
Questionnaire
1. Do you like soft drinks?
A. Yes
B. No
2. How often do you drink soft drinks?
A. Never
B. Rarely
C. Often
D. Always
3. Where do you mostly drink Soft Drinks?

102
A. Home
B. Work
C. Party
D. Pub
E. Other
4. Which type of Soft Drink do you prefer?
A. Orange
B. Lime
C. Cola
5. Which brand do you prefer, Coke or Pepsi?
A. Coke
B. Pepsi
6. Which brand always comes to your mind when you think of having a
soft drink?
A. Coke, but I say Pepsi.
B. I want Pepsi and I say Pepsi.

C. I want Coke and I say Coke.

103
D. I want Pepsi, but I say Coke.
Of the above noted questions, around 60% of people do like soft drinks but
mostly under 30 years of age. People prefer to drink soft drinks at home or a
party rather than work or a pub. Once again, people above the age of 30 don’t
prefer drinking cola; they rather prefer lemon or orange flavors. 8 out of 10
people prefer Coke and out of these 8, 80% refer to Pepsi even though they
have a Coke product in mind.
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
104
Thank You,
K EVIN
KOHLI
BBA-III SEMESTER

Summer Internship Project-Final Draft

Uploaded by

Copyright:

Available Formats

You might also like

Summer Internship Project-Final Draft

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Summer Internship Project-Final Draft

Uploaded by

Copyright:

Available Formats

Summer Internship Project

Summer Internship Project

With the bubbles making the difference, Coca-Cola was

Coke’s first international bottling plants opened in 1906

Coca-Cola continued working for over 80 years on

TURN OF THE CENTURY GROWTH

In a candy store in Vicksburg, Mississippi, brisk sales of

Year 1899: The first bottling

Two young attorneys from Chattanooga, Tennessee

The three pioneer bottlers divided the country into

Year 1916: Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle

In8 the 1920s: Bottling overtakes

As the 1920s dawned; more than 1,000 Coca-Cola

In the 1920s and 1930s: International

Led by Robert W. Woodruff, chief executive officer and

During the war, 64 bottling plants were set up around

In the 1950s: Packaging innovations

For the first time, consumers had choices of Coca-Cola

In the 1960s: Introduction of new

Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in

In the 1970s and 1980s: Consolidation

Advancement in technology led to global economy,

In the 1990s: New and growing markets

Political and economic changes opened vast markets

India is home to one of the most ancient cultures in the

In the decades that followed independence, self-reliance

From 1993 to 2003, Coca-Cola invested more than US$1

Coca-Cola India produced its beverages with 7,000 local

the15company. The complete manufacturing process had

The complexity of the consumer soft drink market

Sanjiv Gupta, President and CEO of Coca-Cola India,

THE INDIAN BEVERAGE MARKET

With its large population and low consumption, the rural

About the Company

A Healthy Growth to the Indian Economy

Coca-Cola India has made significant investments to build

the19first decade, and further pledged another US$100

A Pure Commitment to the Indian Economy

Creating Enormous Job Opportunities

On20the distribution front, 10-tonne trucks – open bay three-

VISION AND VALUES OF THE

Coca-Cola re-entered India in 1993. The vision of the

Our commitment to protecting and preserving the

•Dedicated environmental team at Corporate.

•Operations management provides training to help

•The Company develops training programs to address

Our commitment to the environment extends beyond

Operations management is responsible for ensuring

The company operations are designed to minimize

The wastewater generated at each manufacturing

As per company policy, wastewater treatment

demonstrate support of aquatic life in company's treated

Environmental Due Diligence

•Operations conduct environmental due diligence

We are accountable for our actions. The Coca-Cola

Environmental, Occupational Safety & Health(EOSH)

•The Company's corporate function conducts EOSH