Marketing Strategy

Batch: SMP 07 Center: Hyderabad Team: Ge_ni_S Members:

Prasanna Kumar Pattam S11MMMMM00394 Srinivas Rao Balivada S11MMMMM00821 Ramesh Balla S11MMMMM00454

Venkateshwar Rao K M S11MMMMM00805

Introduction

INTRODUCTION

The Coca-Cola Company was first established in 1886 by Dr John Styth Pemberton. Today, the company is the world's leading manufacturer in the beverage industry, operating globally in more than 200 countries with its head office located in Atlanta, USA. It produces more than 300 beverage brands and over 1.06 billion drinks are consumed per day. In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies necessitated its departure. Coca-Cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc.

Coca-Cola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in Sharjah in the late nineties.

A Healthy Growth To The Indian Economy

Ever Since, 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 countries top international investors, having invested more than US$ 1 billion in India within a decade of its presence and further pledged another US$ 100 million in 2003 for its operations.

A Pure Commitment to The Indian Economy

The Company has not only shaked up the Indian carbonated drinks market, and given consumers the pleasure of world-class drinks to fill up their hydration, refreshment & nutrition needs but has also been instrumental in giving an exponential growth to job opportunities.

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 our vast procurement, supply and distribution system. The vast Indian operations comprises 25 wholly-owned- companyowned bottling operations and another 24 franchisee-owned bottling operations. That apart, a network of 21 contract-packers also manufactures a range of products for the Company On the 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 countries.

Recent Trends Rise in spending power spurs sales Sales of soft drinks via super market / hypermarkets increasing The power of celebrity endorsement remains undiminished Soft drink players expand their product portfolios Consumers are turning to healthier beverages Advertising by film stars Giving stress on advertisement campaigns and comercials Moved from print media to TV ads Soft drink companies later started making tie-ups with shops, retail stores and movie theater for place for their ad campaign Pepsi continued to be the highest spender Soft drink companies have stepped up their effort to capture a larger share of the fountain business by introducing more of their brands at the fountain, by aggressively competing for service contracts with highprofile customers. Fountain customers are becoming increasingly brand conscious Cans New interactive packaging - The new technology is an interesting way of elevating the moment of consumption through additional sensory experiences, adding hearing to taste and sight,

A.

COMPETITIVE ANALYSIS

COMPETITORS

Cokes major competitor is PEPSI and there is no hesitation to say this because every one knows that and all the other cold drinks and water, coffee, tea is the competitors.

MAJOR COMPETITORS

Consumers firstly decide that they are going to have a soft drink. Then they compete brands with each other. Like they compete Coke with Pepsi and Sprite with 7up and team. So the major competitor of Coke is Pepsi. When they motivate to any other brand or on Coke its in instinct basically that based on messages derive certain feelings. But Coca Cola thinks in a different way, they believe that RC Cola, new coming Beverages, and all juices, even they take water and tea as their competitors.

MAJOR COMPETITOR PEPSI INTERNATIONAL

HISTORY

PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods North America, manufacturer and marketer of ready-toeat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.would entertain the listener with the latest musical selections rendered by violin or piano or both. The new name, Pepsi Cola, is derived from the two of the principle ingredients, Pepsin and Kola Nuts. It was first used on the August 28. At that time, Brahams advertising praises his drink as Exhilarating, invigorating, aids digestion.

1990-2002 The advertisement of the Pepsi changes to, You got the right one baby, Uh-Huh! With the extensive usage of the stars in the ads, the popularity of Pepsi increase. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. Outside the United States, Pepsi-Cola Company's soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in more than 190 countries and territories.

PEPSIS PRODUCTS Pepsi Teem

 Miranda Pepsi Max Pepsi Lemon Pepsi Blue Mountain Dew 7up

Value Proposition Product line :The Coca-Cola Company has n no of brands like thus up, sprite. But if we talk about coca cola as a product it has sub products like Diet Coke, Caffeine Free Coke, Cherry Coke Coca-Cola Zero, Vanilla Coke and special editions with lemon and with lime, and even with coffee. They introduced other cola drinks under the Coke brand name. The most common of these is, which has become a major diet cola is diet coke. But we find only diet coke and vanilla coke in India.

Coca Cola Company deals mainly in soft drink industry and these are some of its major brand. It also deals in soda and mineral water through the brand name kinley.

Multi branding is the is the branding strategy used by Coca Cola company for its different products.

Quality :Water

Since water is a key component of the beverages, care is taken that the quality of water is very good. And, since public water quality varies around the world, each plant further treats the water it uses. This means that before water is added to any of the beverages; it's rigorously filtered and cleansed. Then they continuously sample the water to ensure it meets the standard. Apart from that the company ensures quality by making 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 has been rated three star for quality and packaging.

After the pesticide matter coca cola was given a certificate that it is safe to be consumed.

Certificate is as shown below.

Quality Is Our Highest Business Objective

This is the statement given by the company.

Brand Name :Proved in a survey

In 'blind' taste tests, people prefer the taste of Pepsi over the taste of Coke. However, if the test is not 'blind' and the tasters know which beverage is which, they prefer the taste of Coke over Pepsi! That is the emotional power of a brand. The Coca-Cola brand has the power to actually change an individual's taste!

Coca-cola is the no.1 brand in the world. Coca-Cola is recognized by 94% of the worlds population. Guinness World Record ranked coca cola as the most popular soft drink. Coca-Cola had signed on various celebrities including movie stars such as Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly, southern celebrities like Vijay in the past. Today, its brand ambassadors are Aamir Khan and Hrithik Roshan.
Logo :-

The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson, in 1885. It was Robinson who came up with the name, and he also chose the logos distinctive cursive script. Coca cola has two registered trade marks as shown below.

Packaging :-

As we have visited Coca Cola Company personally we have seen that for pet bottles it is produced on the spot when production and packaging work is also done and the bottles are not reused. The glass bottles production unit is not at the place of production but it is brought till there and even the used bottles are used after cleaning it through many processes. The cans are imported from foreign countries as it is not produced here.

The packaging of have been always very attractive and different from others, as we can also see in the bottles below. Even the 600 ml bottle has a different kind of packaging.

The first shape that was registered was of the coca cola bottle. Once the filled beverages have passed final inspection, they are ready to be packaged for delivery. Generally, packing can refer to everything from the unique "BOTTLE" and "CAN" designs, to label designs, to cardboard boxes and containers, to plastic rings. Because the needs and tastes of our consumers are so diverse, packaging varies depending on where the beverages are being sent

Sizes :-

Glass 200 ml, 300 ml, 500 ml, 1000 ml

PET 500 ml, 1.5 L, 2 L, 500 ml + 100 ml

Can 330 ml

Fountain Various Sizes

Positioning :-

Value proposition: `To benefit and refresh everyone who is touched by our business.'

Target customers are the people who are safety and taste conscious. Its benefits is that the drink is refreshing. Target customer, value proposition, benefits.

Innovative product :-

In 2002, the Coca-Cola Company extended the products of Coke and developed the new products Coke with lemon and Vanilla Coke. This extension responded to consumer demands and generated sales and profit. It also launched innovative product like diet coke which was then also copied by their competitors but they dint succeeded.

Guarantees and warranties :-

Coca cola is best before 3 months of manufacturing date.

Price

Most of the bottling companies are under the control of coke which gives that much of flexibility for its modulations in the pricing strategy which cannot be exercised by the rival cola giant PepsiCo because it does not own its own bottling companies hence it does not enjoy that much of flexibility in modulating the pricing strategy of PepsiCo.

Coca cola is available at prices depending on their sizes.

For e.g.

200ml is available at Rs.8.

500ml is available at Rs.20.

1.5 ltr is available at Rs.43.

2 ltr is available at Rs. 48.

The coke is sold in retail stores , petrol stations etc. The pricing methods are set by the company. Usually the prices are fixed. Meet-thecompetition pricing The Coca-Cola products pricing are set around the same level as its competitors.

Psychological pricing Most of the Coca-Cola products use this method of pricing. For example, for a pack of 5 cans of Coca-Cola soft drinks it is priced at Rs.99 instead of Rs.100 this pricing strategy makes consumers perceive the products to be cheaper.

When coca cola entered into Indian market it used penetration method. In India it started with low price, its price in India was just Rs 5 in the year 2003 with an intention to occupy Indian rural market, which is almost 90%of the population.

Coca cola also follows going rate policy as the price of its major competitor Pepsi.

SWOT

(Strength, Weakness, Opportunities, Threats)

Strength
1. STRONG BRAND NAME The world's most valuable brand. Its brand value at $70.45. It is the most recognizable word across the world after Ok is Coke. Extremely recognizable branding is one of CocaColas greatest strengths. Coca-Colas brand name is known well throughout by 90% of the world today.

2. CORPOARATE IDENTITY it has a very strong corporate identity as it is very recognized company in all the parts of the world and it is in existence since 1880s. 3. GLOBAL DISTRIBUTION coca cola is available in each and every part of the world as it is operating globally in more than 200 countries with its head office located in Atlanta, USA and daily more than 1.06 billion dollar are consumed around the world. 4. ADVERTISEMENT of coke is very attractive and they use big stars like Aamir Khan, Aishwarya Rai & Hrithik Roshan in it. 5. INNOVATION it always launches innovative products like diet coke, vanilla coke and many other. 6. LOCAL APPROACH it conducts business on a global scale while at the same time maintain a local approach which is purely visible from its advertisement. 7. STRONG R&D coke has a very strong R&D. 8. BACKWARD INTEGRATION is one of its biggest strength as it has wholly company owned bottling operations and thats why it also has a chance to work on is price. Also according to Bettman Coca-Colas bottling system is one of their greatest strengths. 9. THANDA MATLAB COCA COLA campaign worked really well in India. 10. BRAND LOYALTY Coca cola enjoys the brand loyalty from the customers

11. FINANCIAL STABILTY is their in company as it is a very old and prestigious brand.

Weakness
1. NOT NO 1 IN INDIA in every part of the world coke is at the first position in terms of sales leaving its competitors far behind. But in India it is at the third position behind its biggest competitor Pepsi at first place and coke owned company Thumsup at the second place. 2. MARKET SHARE its market share in India as a product is very less as compared to others.

3. UNDER UTILIZATION OF CAPACITY is one of its weakness 4. SALES IN INDIA its sale in India is 6 bottles per capita per year which is very low compared to other western countries like Mexico which has a total sale of 533 bottles per person per annum.

5. PESTICIDE SCANDAL in India decreased its sale and created a doubt in minds of people about pesticide.

Opportunities

1. POSSIBLE GROWING DEMAND in a country like India the per capita consumption of coca cola per year is the lowest in the world that is only 6 per person. 2. DEVLOPING A GLOBAL BRAND

3. COCA COLAS BOTTLING SYSTEM also allows the company to take advantage. It can work on its price. Most of the bottling companies are under the control of coke which gives that much of flexibility for its modulations in the pricing strategy which cannot be exercised by the rival cola giant pepsico because it does not own its own bottling companies hence it does not enjoy that much of flexibility in modulating the pricing strategy of PepsiCo. 4. SUFFICIENT CAPITAL gives it significant growth opportunities.

5. HAS A POTENTIAL to innovate and differentiate the company's products to sustain a competitive advantage 6. EXPANSION INTO NEW MARKET other than soft drink market. As coke is enjoying so good brand name, then if they enter in any other industry with same brand name it can also succeed in that industry.

7. MERGE with other global business is another option in front of them to expand their business.

Threats
1. COMPETITION PEPSI its competition from Pepsi is a big threat to the company as the market share of Pepsi is more than coke in India 2. . 3. Coca-Cola can be SUBSTITUTED by other soft drink products made by its competitors. 4. The soft drink industry is very strong, but consumers are NOT NECESSARILY MARRIED to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate.

5. PESTICIDE MATTER after the pesticide matter the sales of coke felled tremendously and it happened twice and company has to get a permanent solution to it. 6. Other threat which the companies possess is of CHANGE OF TASTE of their consumers.

Sales Strategy

Distribution Strategy

Centralized distribution system used by the company in the urban areas In the centraized distrbution system the product was tansported directly from the bottling plants to retailers The centralized distribution system is not suitable for rural areas For rural areas Coca cola used Hub and spoke distribution system In Hub and spoke distribution system the stock was transported from the bottling plants to hubs and then from hubs, the stock was transported to spokes which were situated in small towns These spokes fed the retailers catering to the demand in rural areas Used large trucks for transporting stock from bottling plants to hubs Medium commercial vehicles transported the stock from the hubs to spokes From spokes to village retailers the company utilized auto rickshaws and cycles

Pricing Strategy

Issues Faced
Poor road conditions and other infrastructure problems render efficient

distribution by trucks very difficult Power cut Solar powered refrigerators People of rural area are health conscious, prefers health drinks like Mazza, Tropicana

Conclusion