Introduction MRKG

Marketing Strategies Of Coca Cola
INDUSTRY ANALYSIS
Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. Indias FMCG sector is the fourth largest sector in the economy and creates employment for more than three million people in downstream activities. Its principal constituents are Household Care, Personal Care and Food & Beverages. The total FMCG market is in excess of Rs. 85,000 Cores. It is currently growing at double digit growth rate and is expected to maintain a high growth rate. FMCG Industry is characterized by a well established distribution network, low penetration levels, low operating cost, lower per capita consumption and intense competition between the organized and unorganized segments.
Padmashree Dr. D.Y. Patil University's Department of Business Management
INTRODUCTION
HISTORY:
Coca-Cola Enterprises, established in 1986, is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. The Coca-Cola Company traces its beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca -Cola for most of the United States from The Coca-Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a split -adjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986.
In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As Part of the merger, the senior management team of Jo hnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion
COMPANY PROFILE: If we Indians recall our memory there was a time when one was asked for a soft drink, the brand that comes and gave a knock on our mind was Coca-Cola. CocaCola, the word most admired trademark has maintained its special a sense of belongingness to India, which had resulted some sort of its monopoly throughout the Indian soft drink market. It has been said that the internal environment of the industry has been greatly affected from its internal environment. The same thing was also happen with this famous company. When the Government policy were in introduce and forced this MNC's to go outside from the India market. Hence, it was thrown out of India in the year 1977. A lacuna was created at that time in the country's soft drinks market. However after a gap of 17 years, the Coca-cola has reappeared in the soft drinks market of India, by making itself more strong and confident in this field In today's market, the cola's (Coke, Thums up, Pepsi, etc.) had a 70% share, Lemon 10% and Orange 20%. There appears to be a concentrated rush to bag a share in the soft drinks market. Due to a manifold increase in the demand of soft drinks large number of company has entered into this competitive market scenario. During the Second World War Pepsi and Coke, both of them enjoyed a huge sale. After the war the Pepsi sales started to fall relatively to Coke. The factors which were responsible for the decline in Pepsi sales were poor image, poor task force, poor quality control and dull packaging. It was a momentous day when Coca-Cola staged its reliance in India. Coca-Cola was relaunched again in India in Sep. 1993 at Hathras near Agra, where the first bottling facility of Coca-Cola in India was switched on. The Indian people
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Welcomed the comeback of their most loved cola in the country with great enthusiasm and vigor. Coca-Cola market its relaunching acquiring 5 Parle Exports Ltd. Top Selling products Viz-Thums up, Sprite, Limca, Fanta, Mazza, K.Soda,Kwater,Coke. In 2000, the company opened a new bottling plant at Dasna in Agra distt. For the supply of 300 ml Bottle and 1.5 liter Bottles. This plant is more settled equipped than the plant at Ghaziabad.
OBJECTIVE OF COCA COLA

The company has sales based objective .Everything else (marketing plan, advertising plan, production etc.) is derived from this objective. Currently the companys objective is to Increase the volume of sales up to the maximum level as much as possible during the current fiscal year. The company sets its objective keeping in view the past performance, Historical trends, current market position, economic condition, macro environment and micro environment factors, social values, market size and growth rate ,future expectations and predictions.
MANAGEMENT: The hierarchy of Coca Cola Company is as follows.

Chairman Board of governors Vice Chairman and chief operating officer
Executive Vice Presidents
Senior Vice Presidents
Vice Presidents
PRODUCTS:
There are different brands of the Coca Cola Company, which are currently in use throughout the world. This company not only deals in the carbonated drinks but also other drinks. While launching its product, the marketing team considers the culture of the country. Major brands of coca cola
Financial Report
THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
Year Ended December 31, (In millions except per share data) Net operating Revenue Costs of goods sold GROSS PROFIT Selling, general and administrative expenses Other operating charges OPERATING INCOME Interest income Interest expense Equity income (loss) net Other income (loss) net INCOME BEFORE INCOME TAXES Income taxes CONSOLIDATED NET INCOME Less: Net income attributable to non Controlling interests $ 35,119 12,693 22,426 13,158 819 8,449 317 733 1,025 5,185 14,243 2,384 11,859 50 313 8,231 249 355 781 40 8,946 2,040 6,906 82 39 7,506 1,632 5,874 67 $ 30,990 $ 31,944 11,088 11,374 19,902 11,358 350 8,446 333 438 (874) 20,570 11,774 2010 2009 2008
NET INCOME ATTRIBUTABLE $ 11,809 TO SHAREOWNERS OF THE COCA-COLA COMPANY BASIC NET INCOME PER SHARE1 DILUTED NET INCOME PER SHARE1 AVERAGE SHARES OUTSTANDING Effect of dilutive securities AVERAGE SHARES OUTSTANDING ASSUMING DILUTION $ 5.12 $ 5.06 2,308 25 2,333
$ 6,824
$ 5,807
$ 2.95 $ 2.93 2,314 15 2,329
$ 2.51 $ 2.49 2,315 21 2,336
MARKET SHARES
MARKET SHARES
others 6% pepsi 36%
coca-cola 58%
Market shares
Maaza 11% Limca 16% Diet coke 7% thums up 22%
Sprite 18% Fanta 14% coke 12%
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COMPETITOR
The biggest and perhaps the only serious for the coca-cola worldwide has an already been Pepsi. In India, as per as the Cola segment is concerned the with the biggest competition to coke comes from its brands of Pepsi viz. Pepsi and Mirinda. Thums-up, which was the leading brand of Parley product, was acquired by CocaCola just over a year ago to bolster its market share in India. Today, Thums-up along with coke, the leading brand of the Coca-Cola Company, other still competition to Pepsi, which despite this stiff competition is still by far the single most popular Cola drink in India With both the companies being backed fully by the parent concerns based in the united state, the fight to become the dominant player in the huge Indian Soft drink market continues unabated. Aggressive ad campaigns, sale-promotion, schemes for retailers are just some of the strategies being adopted by the two companies to outwit each other and grab and large share of the market. The Cola segment, which occupies by far the largest chunk of the soft drink market in India, the market share of Coke is 60%while the market share of Thumps-up is 32.16%. The market share of Coke in this Cola Segment is 27.84%. The remaining market share is occupied by the other brands, which constitute about 14% of the Cola market share.
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COMPETITIVE AREA
The soft drink market all over the world has been witnessing a neck to neck battle between the two major players, Coca-Cola and Pepsi since the very beginning. The thirst quenchers are trying hard to have to major chunk of the pie of carbonated soft drink market. Both the players are spending their energies in building capacity, infrastructure, promotional activities etc.
Coca-cola being 11 years older than Pepsi has dominated the scene in most of the soft drink markets in the world and enjoying leadership in terms of market share. But the Coca-Cola people are finding it hard to keep away Pepsi, which has been narrowing the gaps regularly. The two are posing threats to each other in every nook and corner of the world. While Coca-Cola has been earning most of its bread and butter through beverage sales, Pepsi has a multi products portfolio with some portion from the same business. The two warriors are face to once again here in India with different strategies and tactics to attack the rival. Coca-Cola is focusing upon the joint ventures with the existing bottlers (FOBO) franchise owned bottling operations to enhance its control on manufacturing and marketing of its products range and attain the quality standards of its class. Countering it Pepsi has taken the battle its own hands by floating as investment of $ 95 billion to set Pepsi Company. India holdings, as subsidiary for (COBO) Company owned bottling operations. Both the companies are following different path to reach the same destiny i.e. to fetch the bigger portion of aerated soft drink market. Both consider India a huge potential market, as per capita consumption here is a mere 3 serving annually against the world average of 80. Therefore, they are putting in their best efforts to woo the Indian consumer who has to work for 1.5 hours to buy a bottle of soft drink. Coca-Cola is well set with its 53 bottling sites throughout the country
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giving it an edge over competition by processing a well-built bottling and distribution set-up. On the other hand, Pepsi, with two more years in India, has been able to set an image of a winner in India and has been able to get the pulse of the India soft drink market. The soft drink giants are leaving on Stone unturned and her for the long terms.
In Coca-Cola camp, the idea of competition has not come from Pepsi, but from the other beverages such as tea, coffee, Nimbu Pani, water etc. Pepsi is quite aggressive in its approach to Indian Consumer. They are desperately working on the strategy to be winners in the hot cola war between two big barons. According to Pepsi philosophy, it's the madness that encourages executive to think, to conjure up those creative tactics to knock the fizz out their competition.
They have been going with aggressive marketing by putting Sachin Tendulkar, Akshay Kumar, Shahrukh Khan AND now Ranbir kapoor replace sharukh khan in their advertisement to endorse their brand, the role models for its targeted consumer the teenagers. They have increased the fizz in the market place by introducing the dispensers called Fountain Pepsi and has been enjoying a lead over its rival there.
Coca-Cola on the other hand, has been working on the saying slow and steady wins the race's side by retailing to every more of its competitor. They have procured the shield of Thums-Up with a handsome market share in Indian soft drink market.
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Countering Pepsi's international commercial that used two chimpanzees to cock a snoop at coke, Thums-up come with the ad line, Don't be Bandar, taste the Thunder. Also Thums-Up has been positioned now very near to that young image of Pepsi and giving it a though time. These cool merchants have put everything on fire. It Coke got the status of the official drink of wills. World Cup, Pepsi blushed as nothing official about it. As Thums-Up projected as 'Saaree Jahan Se Achcha' Pepsi was passionate enough with 'Freedom to be' and now the "Yeh Dil Mange More" when Thums-Up came with Thunder Blast, the other offered 'Pepsi Stuff Card'. If Red is meant for coke, Pepsi has chosen to be blue. Coca Cola come with the punch line ---- " Thanda Matlab Coca Cola" ----- People in India generally refers cold drinks as thanda. So Coke wanted to give an impression that whenever a customer think of Thanda he should think of Coca Cola. So the Punchline makes Thanda equal to Coca Cola.
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Coke Vs Pepsi war begins

Its summertime and same old rivalry has resurfaced- Coca Cola Vs Pepsi! Its been decades since these Cold drink giants are fighting over Indian cold drink market share. First it was cold drink, then the fight extended for other sections like energy drinks, healthy snacks, nankeens etc. But Im here to compare the strategies of both of these Colas and put forward my views and what should or shouldnt work for any of these Cola giantsAdvertisements:It started with Fantas Holi ad for Coke, where Genelia De Souza was seen in a retro look. The ad was fresh and sent a clear message. For some reasons I had not been a Fan of Cola ads but this was unique and cool. Just after this ad Cokes another ad appeared on screens promoting Coca Cola and featuring Imran Khan. This ad really takes all the points away for its brilliant execution- be it the concept, the background score or the super cute looks of both Imran and the western lady. Pepsi also started showing its new Ranbir Kapoor ad on TV, but with the same Youngistan concept. I didnt like it, ad is good but concept is too clich now for Pepsi. The ad concept worked earlier as it was new and Coke didnt have anything competitive. Coke wins this ad war as for now. Lets see how these two promote other products in time to come. Products:It was Pepsi first which understood varied needs of Indian taste and introduced various India centric products like Kukure and Lays with Indian flavours . On the other hand Coca Cola considered India as a regional outpost
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until last year, but after the economy toppled else where they should take India seriously from now on. Now there are two other sections where they both are competing- energy drinks and Lemon water/mango juice/other juice. Pepsi entered into market with Nimbooz which was success, and hence Coke is planning to launch Minute Maid Nimbu Fresh this year. But in Mango drinks they both have strong market presence; Mazaa and Slice compete with Parles Frooti in this segment.
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MARKETING MIX OF COCA-COLA

Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objective of in the target market. The marketing problems are analyzed: 1. By utilizing the important forces emanating from the marketing operation of an enterprise. 2. By adopting producer & for an efficient marketing programme. Firstly, we will look at how Coca-Cola has used their marketing mix. The marketing mix is divided up into 4 parts; product, price, promotions and place.
1. Product:
The product (Coca-Cola soft drink) includes not just the liquid inside but also the packaging. On the product-service continuum we see that a soft drink provides little service, apart from the convenience. Soft drinks satisfy the need of thirst.
However, people are always different, some want more and others want less. Therefore Coca-Cola has made allowances for that by providing many sizes. They also have particular tastes, and again they have provided several options. So, although thirst is what is needed to be satisfied and that is the core benefit, we are receiving other benefits in the taste and size. Coca-Cola has developed several different flavors and sizes as mentioned above, but also several brands such as Sprite, Lift, Fanta and Diet Coke which increase the product line length, thus making full use of the market to maximize sales. The product is convenient, that is - bought frequently, immediately, and with a minimum of comparison and buying effort. The appearance of the product is eye catching with the bright red colour. It has a uniquely designed bottle shape
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that fits in your hand better, and creates a nicer & more futuristic look. The quality of the soft drink is needed to be regularly high. Sealed caps ensure that none of the "fizz" is lost. The bottles are light, with flexible packaging, so they won't crack or leak, and are not too heavy to casually walk around with. The cans are also light and safe
Product Lifecycle of Coke:

Product life cycle has four phases 1. Introduction 2. Growth 3. Maturity 4. Decline. The markets where Coke is a dominant player are United States of America, Europe and Asia, Africa. There is a vast difference in terms of above given phases for example, in U.S.A & Europe it has reached maturity stage where it cant expand its market more but if we consider Asia, it is still in the growth phase. Coca-Cola is currently going through the maturity stage in Western countries. This maturity stage lasts longer than all other stages. Management has to pay special attention to products during this stage of the product life-cycle. During the maturity stage, products usually go through a slowdown in sales growth. According to Coca-Cola's 2001 annual report, sales have increased by 1.02% compared to last year. This percentage has no comparison to the high level of growth Coca-Cola
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enjoyed during its growth stage. To add a little variation Coca-Cola took the CocaCola Classic and added variations to it, including Cherry Coke, Vanilla Coke and Diet Coke. Also Coca-Cola went from 6-oz. glass bottles to 8-oz. cans to plastic liter bottles, all helping increase consumption.
COCA-COLA
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2. Price:
Like any company who has successfully endured a century of existence, CocaCola has had to remain tremendously fluent with their pricing strategy. They have had the privilege of a worthy competitor constantly driving them to be smarter, faster, and better. A quote from Pepsi Co's CEO "The more successful they are, the sharper we have to be. If the Coca-Cola Company didn't exist, we'd pray for someone to invent them." states it simply. The relationship between Coca-Cola & Pepsi is a healthy one that each corporation has learned to appreciate. Throughout the years Coca-Cola has made many pricing decisions but one might say that their ultimate goal has always been to maximize shareholder value. As cola consumption has decreased in the US colas have come to realize the untapped international market. In 2003 both Coke and Pepsi had a solid presence in India and had each introduced a 300mL bottle. In order to grab market share Pepsi began to drop prices (even with summer approaching, which was contrary to policy in America). Shortly thereafter, Coca-Cola decided to drop their prices slightly, but focused on the reduced price point of their 200mL container. Coca- Cola planned to use the lower price point to penetrate new cities that were especially price sensitive. The carbonated soft drink market in India is nearly 37% of the total beverage market there. This low price strategy was not unfamiliar to Coca-Cola. Both Coke & Pepsi utilized a low price strategy in the early 1990s. After annihilating the low price store brands, Coke chose to reposition itself as a "Premium" brand and then raise prices.
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Coca-Cola products would appear, on the shelf, to have the most expensive range of soft drinks common to supermarkets, at almost double the cost of no name brands. This can be for several reasons apart from just to cover the extra costs of promotions, for which no name brands do without. It creates consumer
perceptions and values. When people buy Coca-Cola they are not just buying the beverage but also the image that goes with it, therefore to have the price higher reiterates the fact that the product is of a better quality than the rest and that the consumer is not cheap. This is known as value-based pricing and is used by many other industries in attracting consumers. In India, the average income of a rural worker is Rs.500 a month. Coca Cola launched a 200 ml bottle for just Rs.5, an affordable amount on the pockets of the rural audience.
3. Place:
Coca-Cola entered foreign markets in various ways. The most common modes of entry are direct exporting, licensing and franchising. Besides beverages and their special syrups, Coca-Cola also directly exports its merchandise to overseas distributors and companies. Other than exporting, the company markets internationally by licensing bottlers around the world and supplying them with the syrup needed to produce the product. There are different types of franchising. The type that is used by Coca-Cola Company is manufacturer-sponsored wholesaler franchise system. It is very comparable to licensing but the only difference is that the finished products are sold to the retailers in local market.
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Coca Cola has managed their companys marketing and sales strategy within channels. Have you ever considered the significance of the Coke vending machine to the success and profitability of the Coca Cola company? This channel is direct to consumer and vending machines often have little to no competition and no trade or price promotions. The Coke Company operates three primary delivery systems for its business channels: Bulk delivery for the channels of large Supermarkets, Mass Merchandisers and Club stores; For smaller channels Coke does advanced sale delivery for convenience stores, drug stores, small supermarkets and on-premise fountain accounts. Full service delivery for its full service vending customers. Key Channel Listing Supermarkets Convenience Stores Fast Food Petroleum Retailers Chain Drug Stores Hotels/Motels/Resorts Mass Merchan-disers
Coca-Cola floods all possible retailing stores in satisfying the third part, place. In supermarkets and convenient stores, Coca-Cola products are always easy to
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identify, and usually make up the greater proportion of options to buy. This increases their market exposure through effective use of the retailers. For a FMCG it is important that they can be found and purchased easily. With many automatic Can machines located in many sports stadiums and shopping malls, you don't even need to go to a store to buy a drink. This greatly enhances the speed of purchase.
PROMOTION:
Coca cola spend huge amount of money in promotion activates Top line promotions
Top line promotion: T.V ads, banner, celebrity
Bottom line promotion: promotion schemes, publicity material
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SEGMENTATION OF COCA-COLA
Geographic segmentation
Coke segments its products country wise and region wise. The most important thing is taste and quality which varies to the taste and income level of the people in that country. Region- urban , suburbs, and they are also penetrating into rural market Climate- The main idea is to serve it cold,so they focus on the hot areas. Basically towards the east and centre.
Demographic segmentationAge-The audiences of coca cola ranges from the age of 15 -25 and reaches 40. Coke specifically target younger than older. Income- coke segments different income levels by packing its product economically. For small income people it has small glass bottles of Rs.5 . For middle people it has small non returnable bottle Rs20. For higher income people it has coke tin for Rs 25. Gender- coke basically targets both the male and female. For female they have come up with their diet coke. Family type- Coke is basically for nuclear family, but it is targeting larger family groups by introducing economy pack bottles.
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Psychographic
In this type of segmentation coke uses its packaging strategy. For high status seekers they have come up with tin packaging. For middle class people non returnable packages And for lower income group the glass bottles behavioral
MARKET POSITIONING
The Coca-Cola Company and Coca-Cola a range of beverages suited to different ages, stages, lifestyles and occasions. This includes soft drinks, diet drinks, juices and juice drinks, waters, energy drinks, sports drinks and cordials. As part of a healthy, varied and balanced diet and an active lifestyle, all our products can be enjoyed by the majority of people. We are committed to helping our customers select the product that is best suited to their needs through the provision of detailed product information supported by general advice on healthy Eating, drinking and lifestyles.
Product Range The total range of Coca Cola Company in India includes: Coke. Sprite. Fanta. Diet Coke.
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Children and the role of our beverages:

Beverage choice, like food selection, is a role for parents and we assist them in this through the provision of nutrition information and by making available a wide range of products suitable for all ages, stages and occasions. Coca-Cola's longstanding global policy ensures we do not directly market our products to children under the age of twelve. Our brands are not advertised during children's television times and we do not show children under 12 in advertising or promotional materials drinking our products outside of the presence of an adult. Our sampling events are directed to people over the age of 12.
Packaging:
Coca-Cola is committed to strict environmental guidelines, and to ensuring our packaging has as little impact as possible on the environment
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BRANDING STRATEGIES OF COCA COLA

Brand building strategy -: Brand development strategy of Coca Cola has been far reaching and has managed to remain in the limelight ever since it became a favorite with the non alcoholic drinkers. It has been noticed that brand loyalty is an important factor in maintaining the number one position. Coca Cola has passed several tests of brand enhancement and the company makes it a point that the products under the banner Coca Cola have strong position in the minds of the consumers. The brand development strategy of Coca Cola comprised redesigning of its brand development policies and techniques to keep up with the changing mindset of its consumers. Earlier, this brand believed in the following:
Availability: The Coca-Cola Company increases availability of its product by, proper and timely dispensing systems, distribution system, marketing, etc.
Affordability: Affordability of the product includes pricing decisions, as well as resource management, cost-effective manufacturing.
Acceptability: Making Coca-Cola products the beverage choice for any occasion depends on a variety of strategies to reach the target audience. The common strategies adopted to effect acceptability were though sponsorships, promotion, youth market activities, community programs, and other activates.
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Brand Equity-: Brand equity is difficult to measure because much of it depends on consumers' perception and opinions of a brand. When a product has high brand equity they are successful at retaining their current customers by keeping them satisfied with the quality of products and service. They are also successful at attracting new customers who have heard of the brand through successful marketing or word of mouth. Coca-Cola's brand equity is difficult to measure because they have extended their brand to include numerous products. In addition to the numerous versions of CocaCola worldwide that compete against other beverage brands, Coca-Cola competes with itself. Nationally there are numerous versions / brands that are a part of the Coca-Cola family. In addition to competing against itself the Coca-Cola Company has saturated the market and consumers who may dislike one product may actually enjoy a different Coca-Cola product. However, the consumer may be unaware that the beverage is actually in the Coca-Cola family. As a result measuring brand equity may be difficult as consumers may be loyal and repeat customers of a brand and not know its origin. Coca Cola was taking its core product, Coke, and expanding the product in new form factors and new overseas markets. The brand promise stayed the same whether it was sold in a Coke store in New York or a roadside stand in Mongolia.
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Brand identity: The brand identity is the audio-visual face of the brand - the cues that tell you that you are in the right place. The coca-cola has been since long recognised as an organisation with significant brand identity, with over four hundred brands available in every nook and corner of the world.
Brand image: Brand image stands for the unique set of associations in the mind of customers concerning what a brand stands for and the implied promises the brand makes. There could be hardly any person around the world that hasn't heard the name Coca Cola. Ever since it beginning as world's leading name in cold drinks, Coca Cola has created a strong brand image irrespective of age, sex and geographical locations. Millions of people around the world are consuming cold drinks or soft drinks as part of their daily meal. Coca Cola, ever since its inception has been the leader in soft drink market. Coca-Cola uses famous personalities in its advertisement, like Aamir Khan, Akshay Kumar etc. Its high frequency of advertisements has also helped it in building strong brand image. Coca-Colas brand name is very well known all over the world. Packaging changes have also affected sales and industry positioning, but in general, the public has tended not to be affected by new products.
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Brand loyalty: Brand loyalty is a central construct to marketing. Keeping the consumer satisfied, and loyal enough to frequently purchase just one brand, is more difficult in todays market place than ever before. But today, major brands are experiencing heightened brand loyalty due to the growing popularity of the brand. Coca-Cola has been successful in maintaining its loyal customers.
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TARGET MARKET OF COCA COLA

Coca Cola takes every customer as target and potential customer who is thirsty. All age groups are being target but the most potential is the age group from 18-25 that covers around 40% of total age segments Age The target market for the Coca Cola is based on age. The target audience of Coca Cola is youngster or youth. It is a wide range for targeting. It ranges from the age of 15-25 and also reaches to 40 plus, as they are serving this age group also. Their targeting not based on gender but the results also show that both genders like this product and use it. Gender Surprisingly Coca Cola segments Indiai Market with a percentage ratio of 58% females and 42% male. Life style; busy life style (face shortage of time) and mobile generation Family; dependent on their family Occupation; students and family oriented people Nature; fun loving and entertainment loving Socio economic status; upper lower class and lower class Cokes commercials basically based on young generations, So, the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market.
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FACTORS EFFECTING SALES

There are so many factors, which affects the sale of coke. Here we are discussing three major factors which effects coke. Per capita income Competitors Weather
Per Capita Income:

First we will discuss about Per capita income. This is major factor that affects the sale of this soft drink. Because which every passing year budgets are becoming very strict and tight in order to purchase things. So the disposable incomes of the people are coming down. They spend heavily on rents, utilities, and education and basic necessities and after that when they get extra money they think about this soft drink .So the decreasing per capita income effects badly in selling and production of this soft drink. And to get through with this difficulty there is need to increase the level of per capita income of India because it is much lesser than the rest of the countries.
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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 are the competitors.
Weather
Weather is the third major factor in effecting the Cokes selling. This is underdeveloped market so the cokes consumption in summers is 60% and in winters is 40%.
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MAJOR CUSTOMERS NEED

First of all the majority dont care that what they are going to have. In other words, they dont care before drinking that whether it is Pepsi or coke. They dont actually differentiate between these two brands in order to their tastes. Consumers basically drink what they get. They believe on WHAT COLD THEY SOLD Consumers availability in brands is basically works like: Push availability Pull consumers demand. For this reason Coca-Cola have provided their coolers and freezers in the market. They have maximum number of coolers and freezers in the market. They provide this infrastructure free of cost just to provide child coke to their customer, which they want to be purchase. Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper condition or not, if not then they immediately change or repair it.
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GROWTH STRATEGIES OF COCA COLA:

Coca colas Internal growth stratergies tend to rely on actions such as hiring more employees growing the customer base opening new company-owned locations or developing new products through internal research and development. External growth stratergies tend to focus on meeting growth objectives by establishing relationshipsips with third parties such as stratergic-alliance partners, licensees franchisees and co-branding allies For example coca cola beverages enjoys 1:8:1 market share over pepsi. The potential growth for the company globally is that coca colas system of partnering with the bottler. Both the distributor and the bottler are coca cola companies franchise to sell and distribute coca-cola merchandise, both mutually benefit from the stratergic alliance. This has resulted in to 10% growth in the sale. This is an example of internal growth for the local distributor and external growth through the bottler. When the corporation sells a franchise, it brings money into the company as a whole, when the local distributor uses the stratergic alliance it is increasing its growth internally..companies should learn from this example to effectively use both internal and external growth stratergies to improve its market position Other growth strategies of coca cola (1) Focusing on customer requirements, taste current market trend,competitors ideologies
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(2) Implementing multi-segmentation strategies in their major markets to target distinct market by consumption occasion, competitive intensity and socioeconomic levels (3) implementing well-planned product, packaging and pricing strategies through different distribution channels; (4) driving product innovation along their different product categories and (5) achieving the full operating potential of their commercial models and processes to drive operational efficiencies throughout our company. (6) Introducing new lines of beverages, extending existing product lines and effectively advertising and marketing their products
(7) developing and expanding their beverage portfolio through innovation, strategic acquisitions and by entering into agreements to jointly acquire companies with The Coca-Cola Company (8) strengthening their selling capabilities and go-to-market strategies, including presale, conventional selling and hybrid routes, in order to get closer to their clients and help them satisfy the beverage needs of consumers
Coca cola has been a fine example of executing the growth stratergies. Coca cola is now spread more than 200 countries in the world and is touching new heights day by day through its marketing and growth stratergies.. Also in a country like India coco cola has been expanding its market position is more than that of pepsi and other soft drinks in India as well as in other countries.
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1) Coke has tried its hand in almost each and every aspect in the soft-drink business and has expanded its market by introducing other drinks such as sprite maaza and Fanta..
2) Maaza the mango drink has been marketed by coca-cola and company only in India and Bangladesh as they had to capture the Indian market which had great potentials and was not getting much returns by just selling the original coca-cola product this shows a great example of growth stratergy used by coca-colaindia co. to capture the market in India
3) Coca cola has used an important stratergy to promote growth in various markets by launching and packaging products according to various countries For example in India coca-cola cans are not much popular as in the western countries so coca-cola conducted a research of which type of packaging will suit in india and have found out keeping in mind the mentality and lifestyle of Indians the glass bottles were manufactured and was a great success in indian conditions which expanded the growth of the company in india compared to other soft drinks in this line of business
37
MARKETING STRATEGY
They are determined not only to make great drinks, but also to contribute to communities around the world through commitments to education, health, wellness, and diversity. Consistently shaping the business decisions to improve the quality of life in the communities. It's a special thing to have billions of consumers around the world
ENTRY IN MARKET Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And thats why coca cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more. DISTRIBUTION OF PRODUCTS They do agreements with a shop keepers and stores to exclusive sale in that stores. These stores are called as KEY accounts in their local language. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives.
Different Price In Different Seasons Sometimes Coca Cola Company change their product prices according to the season. Summer is supposed to be a good season for beverage industry in India So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter bottle.
38
PROMOTION STRATEGIES
Getting shelves They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.
Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores.
Sale Promotion Company also do sponsorships with different college and schools cafes and sponsors their sports events and other extra curriculum activities for getting market share.
UTC Scheme UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much popular among children.
39
DISTRIBUTION CHANNELS
Coca Cola Company makes two types of selling Direct selling Indirect selling
Direct Selling In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.
Indirect Selling They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of India by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.
40
FACILITATING THE PRODUCT BY INFRASTRUCTURE
For providing their product in good manner company has provided infrastructure these includes: Freezers Display racks Free empty bottles and shells for bottles
ADVERTISEMENT
Coca cola company use different mediums Print media Pos material Sports Sponsorship Tv commercial Billboards and holdings
Print Media
They often use print media for advertisement. They have a separate department for print media.
41
POS Material
Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas.
Sports sponsorship Coca-Cola has a long history of sports marketing relationships, which over the years Coca-Cola was the first commercial sponsor of the Olympic games in Amsterdam, and has been an Olympics sponsor ever since. Coca-Cola has sponsored the FIFA World Cup, Coca-Cola was one of the official sponsors of the Cricket World Cup held on the Indian subcontinent. Coca Cola is also one of the associate sponsor of Delhi Daredevils in Indian Premier League.
TV Commercials As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels.
Billboards And Holdings Coca cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards.
42
QUESTIONNAIRE Name: Gender: Age: 1. Have you ever tried the product Coca-Cola? a) Yes b) No 2. Do you enjoy the product? a) Yes b) No c) It's not bad 3.Which product of coca- cola do you prefer the most? a) b) c) d) Sprite Maaza Thumps up Diet Coke
4. What brand would you say is more popular among the public? a) Coca-Cola b) Pepsi c) Other 5. Do you enjoy Coca Colas advertisements on TV? a) b) c) d) I really like them They good but nothing special Not bad I don't enjoy the
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6. Do you think the price for a can of Coca Cola is cheap or expensive? a) Cheap b) Slightly over priced c) Expensive 7. If you were to see the Coca Cola logo somewhere would you recognize it? a) Yes b) No 8. How often do you buy the product? a) b) c) d) e) Never Once/few times a year Few times a month Few times a week Everyday
9. Where do you buy Coca-Cola products the most? a) Super Markets b) General stores c) Restaurants (McDonald's, Subway, KFC etc)
10. Would you prefer if coca cola enters into other beverages like tea, coffee etc a) Yes b) No
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DATA ANALYSIS
1. Have you ever tried the product Coca-Cola?
45 40 35 30 25 20 15 10 5 0 YES NO
2. Do you enjoy the product?
40 30 20 10
not bad 25% no 13% yes 62%
Out of the 40people we surveyed, all of them said they had tried Coca-Cola atleast once. This explains the brand awareness of Coca-Cola.
From the analysis, it was found that majority of 62%) respondents said they enjoyed drinking Coca-Cola as against 13 %)who said they dont like coca cloa and 25% said not bad
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3. Which product of coca-cola do you prefer the most? 4. What brand would you say most popular among the public?
other 5% Diet Coke 13% Sprite 32%
Thum ps up 18%
Pepsi 25% CocaCola 70%
Mazza 37%
As seen in the chart, out of 40 people, 37% respondents said, in their opinion, Mazza is more popular while 32% respondents said they preferred Sprite, thumps up with 18% and diet coke with 13% as a popular among the public
As seen in the chart, out of 40 people, 70% respondents said, in their opinion, Coca-Cola was more popular while 25% respondents said they preferred Pepsi as a popular brand. and 5% preferred other brand
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5. Do you enjoy Coca Colas advertisements on TV?
6. Do you think the price for a can of coca cola is cheap or expensive?
I don'nt like them
Not bad They good but not nothing special I really like them 0 5 10 15 20
10 20 30 40
Expensive
Slightly over PRICE
cheap 0 5 10 15 20 25
The chart represents that a majority of people thought the Advertisements were good enough & they like what they see.
The chart represents that 21% of people said coke price slightly over price where 17% said it is cheap price and few people rating it is expensive
7. If you were see the coca cola logo somewhere would you recognize it?
No 23%
yes 77%
The chart represent that a majority of people thought the Advertisements were good enough & they like what they see
47
8. How often do you buy the product?
9. Where do you buy Coca cola products the most?
Everyday Restaurants Few time a week Few time a month Once/ few times Super Market Never 0 5 10 15 0 10 20 30 General Stores
As it can be seen in the figure, it was concluded that majority of the respondents bought the product quite frequently. This shows the brand loyalty of the customers towards Coca-Cola.
As seen in the above chart, customers usually preferred to buy Coca-cola in Genral Stores. The second largest option was restaurants like KFC, Mc Donalds, Sub-Way etc
10. Would you prefer if coca cola enters into other beverages like tea, coffee etc?
No 48%
YES 52%
This is very closest answer between yes or no, 52% are like if coca cola enter into other beverages like tea or coffee,48% said no
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RECOMMENDATIONS:
After completing our project we have concluded some recommendation for the coca cola company, which are following. Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. Marketing team should try to increase the availability of Coke in rural areas. Company professions must not make the false promises about the merchandising assets with the retailers. These retailers must get the proper information and guidance about the company policies on the merchandising assets. So that there must be no frustration generated. Schemes should be transparent and made clear to the retailers. Customers can be informed about the schemes through the broachers. Broachers can be distributed to all the retailers for the schemes that are being launched once in a year. And for the daily schemes which get change on daily bases and which depends on the stock availability providing details about the day's schemes/ after a paper/ pamphlet on different products can be sticked to the delivery van signed by the ASM or anybody authorized. So that every retailer if needed/ required can verify himself about the daily schemes. A proper trust and relationship building process is required with the retailers, which need to be worked on.
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CONCLUSION
It was observed that Coca-Cola has been perceived quite positively as it has been projected. People are aware of the Brand & Awareness of Coca-Cola is quite high in the market. When a product is launched, avid Coke drinkers choose this soda over any other competitor simply because it's a Coca-Cola product and they trust it. Although Coke has been into controversies, people still prefer to stay loyal to the Brand with Coca-Cola being termed as a more popular brand than Pepsi. Coca-Cola products would appear, on the shelf, to have the most expensive range of soft drinks common to supermarkets, at almost double the cost of no name brands. This can be for several reasons apart from just to cover the extra costs of promotions, for which no name brands do without. When people buy Coca-Cola they are not just buying the beverage but also the image that goes with it, therefore to have the price higher reiterates the fact that the product is of a better quality than the rest and that the consumer is not cheap. In supermarkets and convenience stores Coca-Cola has their own fridge which contains only their products. There is little personal selling, but that is made up for in public relations and corporate image. Coca-Cola sponsors a lot of events including sports and recreational activities.
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BIBLIOGRAPHY
BOOKS Marketing Management, - Philip Kotler,
Websites Referred www.coca-cola.com www.moneyconrol.com www.marketingfunda.com
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Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

OBJECTIVE OF COCA COLA

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

MANAGEMENT: The hierarchy of Coca Cola Company is as follows.

Executive Vice Presidents

Senior Vice Presidents

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

$ 2.95 $ 2.93 2,314 15 2,329

$ 2.51 $ 2.49 2,315 21 2,336

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Sprite 18% Fanta 14% coke 12%

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Coke Vs Pepsi war begins

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

MARKETING MIX OF COCA-COLA

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Product Lifecycle of Coke:

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Top line promotion: T.V ads, banner, celebrity

Bottom line promotion: promotion schemes, publicity material

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management

Marketing Strategies Of Coca Cola

Padmashree Dr. D.Y. Patil University's Department of Business Management