CIA - 1

MARKETING MANAGEMENT

COCA COLA COMPANY

Submitted By
ANUSHKA JAIN- 2128133
SAGNICKA PAUL- 2128150
SHEETAL RANI- 2128151
SOMYA SHUKLA- 2128155
MOHAMMED SHAHID- 2128165

Submitted to
Dr. BARKATH UNISSA

MBA PROGRAMME
SCHOOL OF BUSINESS AND MANAGEMENT
CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE
 INTRODUCTION

The global FMCG market is estimated to increase at a CAGR of 5.4 percent to $15,361.8
billion by 2025. Consumer packaged goods, often known as fast-moving consumer goods
(FMCG), are low-cost items. These foods are typically consumed in modest quantities and can
be found in a variety of places, including grocery stores, supermarkets, and warehouses. The
FMCG market has developed steadily over the preceding decade as a result of the adoption of
experience retailing and customers' desire to enhance their physical shopping experience with a
social or leisure endeavour.

Product type, distribution channel, and geography are all used to segment the worldwide
FMCG market. Food and drinks, personal care (skin care, cosmetics, hair care, and others),
healthcare (over-the-counter medications, vitamins & nutritional supplements, dental care,
feminine care, and others), and home care are the product categories. Supermarkets and
hypermarkets, grocery shops, specialized stores, specialty stores, e-commerce, and others make
up the distribution channel section. North America, Europe, Asia-Pacific, and LAMEA are the
regions studied.

The food and beverage industry topped the FMCG industry in 2018, and it is likely to do so
again throughout the forecast year. Consumers are more aware of and accepting of foods and
beverages from other cultures these days. They are driven by a desire to expand their
knowledge and seek out new experiences. Food and beverage firms have been forced to
maintain the quality of their products as a result of this desire for new experiences. The healthy
eating trend has also influenced the growth of the food and beverage industry. Consumers have
become more health-conscious, and a growing number of people have started to adopt special
diets and seek out these enhanced options at home and in restaurants.

North America is predicted to continue to dominate and grow at a steady rate in the FMCG
industry in 2018. However, due to changes in lifestyles brought about by globalization and a
rise in the working population, Asia-Pacific is predicted to expand at the fastest rate of 8.0
percent. The development of the wealthy people, as well as more excellent internet and social
media usage, has increased the consumption of processed and packaged foods, paving the path
for the region's FMCG sector to flourish. Furthermore, future development potential for the
FMCG industry is likely to come from product innovations and the launch of new items with
attractive pricing.

The following are the main advantages for the FMCG market:

 The study examines the current trends, drivers, and dynamics in the FMCG market in order to
identify current opportunities and investment areas.

 It offers a qualitative and quantitative analysis of the global FMCG market from 2018 to 2025,
allowing stakeholders to have a deeper understanding of the market.

 An in-depth look at the key categories demonstrates the wide range of fast-moving consumer
goods available.
 Competitive intelligence in the industry focuses on major companies' business practises across
geographies as well as current market opportunities.

 Have a better understanding of the market's competitive landscape, significant businesses are
profiled, along with their strategies and advancements.

Marketing Mix of Cola-Cola

Product Strategy
Coca-Cola is one of the most well-known brands in the world, as well as the most famous and
best-selling soft drink. Sprite is a well-known lemon-lime soft drink that was first released in
1961. Fanta is the second-oldest Coca-Cola brand, having debuted in 1940. It has an orange
flavour to it. In certain locations, Diet Coke is referred to as Coca-Cola Light. A calorie- and
sugar-free soft drink. It was first introduced in 1982. Coca-Cola Zero: Introduced in 2005, this
sugar-free beverage immediately became a million-dollar brand.

Price Strategy

Coca-marketing Cola's mix includes a price discrimination strategy. This means that different
prices are charged for different types of items. The beverage sector is classified as an oligopoly
since it has a small number of sellers and a large number of purchasers. The two most powerful
brands in the country are Coca-Cola and Pepsi. As a result, Coke and Pepsi products in similar
sectors are priced similarly.

Location and Distribution Plan

Coca-Cola has amassed a massive distribution network as a result of its 130-year history and
operations in more than 200 countries across the world. Their geographical strategy is
highlighted by their extensive distribution network. Coca-Cola uses its proprietary formula to
create the beverage and distribute it to bottlers all over the world. The company owns and
administers the brands, in addition to producing and supplying concentrates, beverage bases,
and syrups to bottling plants. Following that, the finished branded beverages are packaged,
merchandised, and transported to vending partners, who then sell them to customers.

Its products can be found in nearly every retail store and supermarket. Coca-Cola products are
sold in 2.5 million stores in India. Their products are also available at a variety of hotels and
restaurants all around the world.

Promotional Plan

Coca-Cola is the gold standard in terms of advertising and branding. Coca-marketing Cola's
strategy focuses on aggressive advertising across a variety of media channels, including
television, online adverts, print media, sponsorships, and so on. Coca-Cola sponsors a number
of events, including American Idol, the BET Network, NASCAR, the NBA, the NCAA, the
Olympics, and the FIFA World Cup.

Coca-Cola also broadcasts ads in a number of other national languages throughout the world.
In March 2016, Coca-Cola launched the "Taste the Feeling" campaign in India, with the goal
of reminding people of the joy and happiness that Coke brings to their lives. Coca-Cola has
grown into a mass-market beverage that can be found at any time and in any location.

MICROENVIRONMENT ANALYSIS OF FMCG INDUSTRY:

The microenvironment is the operating environment of an industry, as the functioning of this
environment has an immediate and direct impact on the sectors. It is an internal environmental
analysis and aims to arrive at a competitive advantage for the business so that strategies can be
used to generate higher profits.

Industry structure:

The FMCG market of India is divided into two sectors the organized sector and the
unorganized sector. The organized sector has only a few Indian companies and MNCs,
whereas the unorganized sector is crowded by many local players.

The Indian FMCG market is estimated to be worth Rs.460 billion, with indigenous and
unbranded items accounting for the majority of sales. Many organised players have found it
difficult to properly launch a product and gain market share. With millions of retail locations
around the country, India's infrastructure and transportation networks have been a challenge in
terms of distribution and supply chain management. Although infrastructure and transportation
systems have improved in recent years, many players still see them as a hurdle.

Confectioneries, drinks, detergents, toothpaste, toilet soaps, shampoos, lotions, powders, food
goods, and cigarettes are all part of the FMCG industry.

Typical characteristics of FMCG products are:

The items are designed to meet the needs of necessity, comfort, and elegance. Demand
elasticity varies depending on the product and the consumer. Individual goods have a low
value (small SKUs), but FMCG products as a whole account for a large portion of the
consumer's expenditure. The average shopper spends only a few minutes debating whether or
not to buy anything. He doesn't look at the technical specs too often. Purchase decisions are
influenced by brand loyalty or recommendations from reputable retailers/dealers. Consumers
keep a limited inventory of these items (many of which are perishable) and prefer to acquire
them regularly, as needed.
Heavy advertising, merchant recommendations, or word of mouth are all common causes of
brand switching.

Distinguishing features of Indian FMCG Business

Consumer packaged goods (FMCG) firms market their goods directly to customers. The
following are notable characteristics that set this sector apart from others:

Design and Manufacturing

Low Capital Intensity: Capital intensity is low since most FMCG items require little
investment in the plan, machinery, and other fixed assets. The fundamentals of industrial
technology are widely available.
Production and inventory planning flexibility, labour cost management flexibility, and
logistical flexibility are all advantages of third-party manufacturing.

Marketing and Distribution

With huge investments in product development, market research, test marketing, and launch,
there is a high initial launch cost. Creating recognition for a new brand necessitates a
significant initial investment.
 Colossal Distribution Network: With millions of retail outlets around the country, logistical
functions for many players are onerous.

Competition
The market is crowded with many unorganized players. The presence of many unorganized
players and highly capable MNCs provides fierce competition in the market to launch many
new brands. This gives a wide range of choices of brands for the customers.

MACRO ENVIRONMENT ANALYSIS OF COCA COLA COMPANY:

Coca-PESTLE Cola's Analysis looks at how political, economic, social, and technical (PEST)
aspects, as well as legal and environmental factors, affect its company. The PESTLE Analysis
identifies the various extrinsic circumstances that have an impact on the brand's business.

• POLITICAL FACTORS:
Coca-Cola can have a direct impact on food goods due to government laws and regulations.
These laws may differ from one country to the next. The selling of Coca-Cola was formerly
prohibited in Burma due to US-Burma trade prohibitions. After a nearly six-decade hiatus, the
sale resumed in 2012, when the sanction was lifted. Due to the political situation in Cuba and
North Korea, Coca-Cola cannot be purchased or sold in any of these nations. The recent trade
war between the United States and China has had a significant influence on the prices of
CocaCola canned products. Steel and aluminum tariffs have increased, putting pressure on the
company's bottom line.

• ECONOMIC FACTORS:
Coca-Cola is the market leader in carbonated beverages, with about 50% of the market share.
Despite the price hikes caused by tariffs, it recorded an increase of 8% in net sales in the third
quarter of the fiscal year 2019. However, the acquisition of a company like Chi Ltd. in Nigeria
had a negative influence on the margin. The corporation supports the new trade agreement
between the United States, Mexico, and Canada, which will allow for free and fair trade
between the three countries. Consumer demand has evolved away from sugary drinks and
toward lowcalorie beverages. The retail value of Coca-Cola products such as Diet Coke and
Zero Sugar has increased by 8%, according to the corporation. Coke Zero Sugar had its best
year and fastest growth in 2018, according to the company's CEO. People have becoming more
conscious of their lifestyles. Therefore the demand for these items is projected to rise in the
future.

• SOCIAL FACTORS:
Coca-Cola has always used social media to engage with its customers. It started the
#shareacoke campaign in 2014, which was a huge success. People were asked to look for
bottles with names they were familiar with, offer them to relatives or friends, and then share
them on social media with the hashtag share a coke. Customers can also personalize their
bottles at the Coca-Cola online store. On a personal level, the brand is connected with the
customer. The company redesigned all its social media accounts with the goal of becoming a
more positive social media brand. It was done on the International Day of Kindness. It used the
hashtag #refreshthefeed to post all of its stuff. These Coca-Cola advertisements are more
appealing to millennials because they actively participate in them via social media, and
personalization has become a way of life for them.

• TECHNOLOGICAL FACTORS:
Coca-Cola has a history of tinkering with its product range. It comes with Japan's first ready-
todrink frozen beverage. The organization has a culture that encourages creativity. It enables
customers to interact with Coca-Cola goods by playing games online. It stays young, new, and
 current by utilizing social networking technology. The company offers a freestyle dispenser
that allows customers to mix and match their own drinks using a computer-like interface. It
also saves data for market research, which the corporation will utilize to understand consumer
tastes and preferences better. It makes you feel as if you want the thing by using online
advertising.

• LEGAL FACTORS:
Coca-Cola has had problems in the past owing to the amount of caffeine in its products in
various nations. The corporation was also accused of paying poor wages and treating staff in an
unprofessional manner, prompting labor union complaints. It has filed racial discrimination
lawsuits against its employees. Because one of its products was mislabelled as pomegranate
and blueberry juice when it was actually apple and grape juice, it has caused significant worry.
The corporation has been concerned about issues like packaging, water usage, and air
pollution. It should place a strong emphasis on corporate ethics. The Coca-Cola company is
particularly concerned about them.

• ENVIRONMENT FACTORS:
Coca-Cola has received a lot of flak in India for draining the groundwater. It has been reported
that it is the world's largest consumer of fresh water. It has taken initiatives to address these
issues and achieve near-zero carbon footprints. It has employed water-wise agricultural
techniques such as RAIN and CARE, which use as little water as possible. In Fiji, the Coca-
Cola corporation is also using solar energy to create its beverages. In their 2018 sustainability
report, they stated that they would aim towards a waste-free future and set several goals for
2020, including a 25% increase in water efficiency from the current 18%.

Coca-marketing Cola's structure

Coca-Cola began its Indian expansion by purchasing Parle Foods and local brands such as
Thumps Up, Limca, Mazaa, and others. Coca-Cola was able to broaden its worldwide reach by
combining Indian and Western brands. Coca-Cola was able to reach a large audience in India,
where people are price conscious and prefer beverages such as nimbu paani and tea to soft
drinks, by implementing a comprehensive brand-building strategy. Following the Affordability
approach, Coca-Cola has risen at a 40 percent compound annual growth rate since 2002 and
has been growing in double digits since then. The total number of consumers has increased
from 162 million in 2006 to 233 million in 2004.

Distribution strategy in the Marketing strategy of Coca Cola

Depending on the market, geographic conditions, and consumer profile, it employs a variety of
sales and distribution models:
(1) the pre-sale system, which separates the sales and delivery functions, allowing trucks to be
loaded with the mix of products that retailers have previously ordered, thereby increasing
both sales and distribution efficiency;
(2) the traditional truck route system, in which the person in charge of the delivery makes
immediate sales from the inventory available on the truck;
(3) a hybrid distribution system in which the same truck carries products available for
immediate sale and products available for quick delivery.
(4) the telemarketing system, which could be combined with pre-sales visits and
(5) sales through third-party wholesalers of the products.
The factors of Coca-Cola's marketing strategy are:

The shape of the bottle - Coca-popularity Cola's is due to its constancy and the fact that
everyone, regardless of age or nationality, can recognize the product. A national contest for a
new bottle design was established in 1915 when the brand was losing market share to hundreds
of competitors. This allowed buyers to recognize the original bottle and gave the product a
more premium appearance.

Coca-distinctive Cola's typography and logo – Coca-unique Cola's font and logo have stayed
intact since its inception, making it instantly recognizable to its customers. The logo was first
created in 1923 when the corporation decided to employ the Spenserian script font, which was
solely used by accountants at the time. This set the firm logo out from the competition.

Price strategy
Coca-Cola maintained a set price of only five cents from 1886 to 1959. However, as time
passed, the product's price continued to fluctuate in order to keep up with its competition.
Slogan - Even after 125 years and more, the company's sayings, such as "enjoy," "You Can't
Beat This Feeling," and "Happiness," has remained consistent in conveying one compelling
and robust message. Demonstrating that Coca-Cola has always had basic, clear slogans that
can be related to and translated in any country.

Well known marketing campaigns of Coca Cola

Share A Coke campaign

The initiative began in Australia and New Zealand in 2011 with the use of 250 of the most
popular millennial names to promote items to specific consumers and raise brand awareness
internationally. The corporation urged its customers to share a coke with a friend who shared
the same name. As soon as people started posting images of the campaign on social media, it
went viral. This campaign quickly extended to 70 nations and was a huge success.

The Fifa Worlds Cup Campaign

The World Cup campaign was intended to honor the positive that may come from people's
passion for a particular sport. Coca-Cola was the most prominent sponsor of the 2014 FIFA
World Cup, and they used the chance to tell the Coca-Cola story. The company created a
twominute video ad for the World Cup called "One World, One Game," which highlighted the
narrative of four football clubs from Otsuchi, Japan, Eastern Europe, the Amazon, and
Ramallah, Palestine all of which had recently suffered disasters.

The Happiness Machine campaign

The Happiness Machine Campaign is one of Coca-most Cola's well-known campaigns, and it
was a part of the company's global integrated campaign Open Happiness. The purpose of this
campaign was to convey joy and unexpected experiences to customers. Coca-Cola vending
machines were deployed in a variety of locations around the world, coupled with a hidden
camera around the perimeter. They documented the campaign for two days and produced a
video of the participants' reactions to receiving free Coke or other items like sunglasses,
flowers, and so on.
MARKETING STRATEGIES OF COCA COLA

PRODUCT STRATEGY

Coca-cola is a soft drink company with a wide range of products. These items are available all
over the world, and the marketing mix can look into their product strategy. Coca-Cola, Diet
Coke, Light, Minute Maid, Coca-Cola Life, PowerAde Zero, Coca-Cola Zero, Sprite Fanta,
and more brands are included. These items are available in a variety of packaging and sizes.
They have a sizable market share and bring in a lot of money for the corporation.

PRICING STRATEGY

Coca-pricing Cola's has been constant for over 73 years. Over time, it only cost five cents.
With competitors such as Pepsi, Coca-top Cola's competitor, the market becomes more
competitive.
As a result, the company's price approach must be adaptable. If a corporation pursues this
method, customers begin to question the product's quality, resulting in a major reduction in
price or value if the company raises its price unfairly, and customers migrate to the alternative.

PLACE STRATEGY

Coca-cola is a multinational corporation with a wide distribution network; its goods are
marketed in over 200 countries. Latin America, Africa, Europe, the Pacific, Eurasia, and North
America are their six operational regions. For bottling, packing, and delivery, the corporation
relies on its bottling partners. Manufacturing, packing, and shipment to the agents are the
responsibility of the bottling partners, who then deliver by road to the stockiest, distributors to
retailers, and the end client. This is the method through which it is provided on a daily basis.
Coca-cola products may be found in nearly all retail locations, supermarkets, and grocery
stores. Their goods may also be found at a variety of restaurants and hotels across the world.
Coca-Cola has a large reverse supply chain network that gathers and reuses used glass bottles,
saving money and resources.

PROMOTION STRATEGY

Coca-Cola relies on various promotional and marketing methods due to fierce market rivalry.
They are mostly concerned with aggressive marketing. According to data, Coca-Cola spent $4
million on brand marketing in 2016 and would spend $4.1 million in 2018. It advertises its
brand using both conventional and foreign channels.

CLASSIC BOTTLE

In 1913, as the firm was losing market share, it organised a global bottle design competition.
The company's main goal is to convince people that Coca-Cola is the best product available
and that all other brown beverages are inferior. The Cocoa pods were fashioned in such a
lovely style by the contest winner that the corporation began marketing forms and logos. Then,
as a main way of drinking, plastic is replaced by glass internationally..

COMPANY FONT AND LOGO DESIGN

To set itself apart from its competition, the firm opted to create its logo in the Spenserian style.
Although the recipe and branding stay the same, the packaging changes with time. For almost a
century, the way the corporation employs its emblem in its marketing plan has left an indelible
impression on consumers' minds.

SIMPLICITY

Despite the fact that it has grown into a vast industry, Coca-Cola never strays from its path.
The marketing campaign has communicated the same strong message of happiness,
satisfaction, and pleasure for decades. It will never go out of style and is simply translated
throughout the world.

LOCALIZED POSITIONING

The corporation started a promotion to share a coke in almost fifty nations in 2018, and it was a
huge success. They print messages, including photographs of regional personalities, that are
tailored to the area's culture and language. They are able to target the local market in this
manner. This is a great example of how to apply localised positioning to a global market.

SPONSORSHIPS

Coca-Cola is a well-recognized brand for its sponsorships. Its long sponsorships history
include American idol, the Olympic Games, NASCAR, and many more.

SOCIALIZATION

Online communication channels have become the most important source of marketing as
technology has advanced. Coca-Cola also uses all social media platforms and builds a profile
on each one. It also participates in an online commercial campaign. On Facebook, Twitter,
Instagram, and Snapchat, for example. They may be found on all major social media sites.
Their marketing strategy is unique, especially considering how amazing the brand is and
attracting dozens of people. Coca-main Cola's goal is to increase brand recognition and
awareness.

GLOBAL OUTREACH

The Coca-Cola Company is the world's largest beverage company, with operations in more
than 200 countries. The Coca-Cola business is present whenever a great catastrophe occurs in
any region. It encourages individuals to do all they can to help persons affected by the tragedy
and to undertake all feasible recovery efforts. These initiatives go unreported by the media, but
they are observed by those who are actively involved on the ground.

MARKET SEGMENTATION

Coca-Cola caters to many types of customers, although its primary focus is on age, family size,
and money. Coca-success Cola's can be attributed to its precise segmentation.
AGE

Coca-Cola targets age, which is separated into two parts, as one of the most important
elements. First and foremost, they are aimed towards young people aged 10 to 35. As a result,
it mostly utilises pop stars in its advertising. They organise various contracting campaigns at
universities, colleges, and schools, among other places. They also introduced diet coke to
target senior citizens aged 40 and up who are health-conscious and diabetic.

INCOME AND FAMILY SIZE

Income is another factor that is segmented, and it is related to family size too. Coca-Cola
introduced different packaging and measures at different price levels so that everyone easily
affords them.
Especially students, middle class, low class so that everyone enjoys the taste of Coke.

GEOGRAPHICAL SEGMENTATION

As we know, the Coca-Cola Company sells its products globally and in more than 200
countries. They apply marketing strategies according to income, culture, customs, and climate.
For example, in America and China in America, the product demand reached a high level, and
it is liked by aged people too, and in China, the potential of growth is high, but it differs from
habitat and needs. In Asian regions, people mostly prefer tea instead of beverages. There is
variation in marketing strategies, advertisement campaigns, drink look and taste, because of
people's diverse tastes. Taste varies according to the region like Asian people like sweeter taste
than other countries, but the essential ingredients and processes are the same worldwide.

GENDER SEGMENTATION

Coca- Cola also targets gender, male, and female differently. However, there is a difference in
taste and preference. For example, Coca-Cola light is popular among females, especially
among young girls, Coke zero and thumbs up are popular among males due to their pungent
taste. They use different targeting strategies like in designing the coke zero packaging. They
use red and black looks, which gives more masculine looks as compared to coke light. And
there is also a difference between commercials and advertising campaigns. These marketing
strategies are applied to attract people and increase the product's sales, which provides high
profit to the company.

CONCLUSION :

It took 21 years for the world's largest beverage firm to sell one billion cases—or containers—
of sugary sodas and drinks in India. In the next five years, it plans to sell another billion. This
comes as Coca-Cola Co. aspires to make India its third-largest market in terms of volume, up
from fifth. However, the company's chairman and worldwide chief executive officer, James
Quincey, disagrees.

Specify a timeframe for doing so. Coca-Cola will not invest in India again until 2022,
according to Quincey. "What we're focusing on is getting our investment plan, which runs
through 2022, finished, preferably on or ahead of schedule, to support the development that's
coming for the marketplace (India)," he said today to BloombergQuint. He stated that the
corporation would introduce items.

He stated that the corporation would introduce items targeting lower price points both inside
and beyond its present offering. In 2013, the corporation announced a $5 billion investment in
India, followed by a $1.7 billion investment four years later for the fruit circular economy, a
project to obtain native produce for use in its drinks. Coke's move away from sugary drinks is
part of its strategy to stay ahead of the competition.

REFERENCES

 Detailed PESTEL Analysis of Coca Cola | EdrawMax Online. (2012). Edrawsoft.

https://www.edrawmax.com/article/coca-cola-pestel-analysis.html https://www.coca-

colacompany.com/. (n.d.). Https://Www.Coca-Colacompany.Com/.

 https://www.coca-colacompany.com/ https://fourweekmba.com/coca-cola-pestel-

analysis/. (n.d.). Https://Fourweekmba.Com/Coca-Cola-

 Pestel-Analysis/. https://fourweekmba.com/coca-cola-pestel-analysis/

 https://www.brainito.com/blog/marketing-strategy-of-coca-cola
PLAGERISM REPORT