COCA-COLA INDIA

MORE THAN JUST SUGAR AND FIZZ

- SANDEEP PURI, ARCHIT KACKER & SHREYA GUPTA

HARVARD BUSINESS PUBLISHING

IVEY
MAR 2, 2018
KEY ISSUES:
 Health concerns associated with the product

Symptoms:

 Falling market share “A sugary Dinosaur

 Dip in sales volume in a Stevia World”
Challenges:

 Growing awareness about health and well-being

 Changing buyer habits
 Rapid growth of competitive brands
 Local/Regional competition
DECISION PROBLEMS:

 Should Coca-Cola move away from its core competency i.e. carbonated drinks?

 Should Coca-Cola tweak existing products and opt for product or brand extension?

 Should Coca-Cola look towards the future and focus on the healthier drinks?
GENERATING ALTERNATIVES: SWOT
Strengths: Weaknesses:
 Largest market share 1) Low presence - Health Beverages Sector.
 Fantastic marketing strategies 2) Water Management
 Excellent distribution network 3) Low product diversification
 Global presence

 Unique brand identity

Opportunities: Threats:

1) Diversification 1) Indirect Competition - Local & emerging

brands
2) Tap the tea/coffee & packaged drinking water
market 2) Nutritional content (excess sugar)

3) Market the lesser selling products 3) Water scarcity

1/4
GENERATING ALTERNATIVES: PORTER’S 5 FORCES

• Low entry barrier   LOW

• Local competition 
• Large no. of suppliers 
• Low switching cost for Coca Cola
MEDIUM-HIGH

HIGH

HIGH
• Low switching cost for customers  
• Individual consumer: no power • Local flavors
• Large retailers: some power  LOW • No unique taste 
Low
• Consumer’s Brand Loyalty
2/4
GENERATING ALTERNATIVES:BCG MATRIX

3/4
GENERATING ALTERNATIVES:
1.Strategic acquisitions
• Gain Market share (tea/coffee)
• Packaged drinking water   products (reducing sugar content)
3. Diversifying portfolio - Healthy
Beverages
• Invest in fruit based beverages
(healthy + natural sugar), dairy
products
• Introduce functional beverages.
2. Leveraging its core competency
• Brand extension / Modify existing
4. Rebranding (Healthy Image)
• Support local tea/coffee makers
• Support farmers - create fruit
circular economy
• Exercise green practices: water
recycle/reuse
4/4
DEVELOPING DECISION CRITERIA:

1. Ease of implementation or modification

2. Risk levels
3. Costs
4. Sales or market share
5. Customer satisfaction
 ANALYSING AND EVALUATING ALTERNATIVES ON THE BASIS OF
DECISION CRITERIA: ( COLUMN WISE
RANKING 1-LOW, 4-HIGH)

Decision Criterias Ease of Risk Cost Sales/Market Customer Total

Implementation Level share Satisfaction

Weights 0.1 0.2 0.1 0.3 0.3 1

1 Strategic Acquisition 2 1 4 4 3 2.9

2 Rebranding (Healthy 4 3 2 2 2 2.4

Image)

3 Diversifying Portfolio 3 2 3 3 4 3.1

- Healthy Beverages

4 Leveraging its core 1 4 1 1 1 1.6

competency
SELECTING THE MOST PREFERRED ALTERNATIVE:

Preferability Alternative

1 Diversifying Portfolio - Healthy Beverages

2 Strategic Acquisition

3 Rebranding (Healthy Image)

4 Leveraging its core competency

DEVELOPING AN ACTION/IMPLEMENTATION PLAN:

1. Defining objectives
2. Communicating the goal
3. Market research
4. Product planning
5. Supply chain management
6. Resources procurement
7. Production
8. Product launch and marketing
9. Distribution channel management
10. Feedback
HOW CAN COCA-COLA BE PREPARED FOR IT?

 Knowing that India is not a “soft drink” market, rather a “cold drink” market.
 Focusing on distribution and penetration
 Moving consumers from occasional consumption to regular consumption
 India is a diverse country, keeping regional sensitivity in mind, while marketing.
 Prepared and presented by:

Group 4:

THANK YOU !! 153004 Abhishek .

153017 Bhupesh Negi
153024 Mahita Kesharwani
153037 Rishab Jaiswal
153044 Shriya Mathur
153057 Vaibhav Singh