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MARKETING STRATEGIES OF COCOCOLA INDIA Presented by Shahnas A Sabitha Z.B Coca-Cola got the permission to enter the country with a 100 per cent unit in India. – PowerPoint PPT presentation

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Title: MARKETING STRATEGIES OF


1
  • MARKETING STRATEGIES OF
  • COCOCOLA INDIA
  • Presented by
  • Shahnas A
  • Sabitha Z.B

2
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3
COCA-COLA
  • Coca-Cola Company is the world's largest
    nonalcoholic beverage company.
  • Within our more than 400 brands are nearly 2,400
    beverage products.
  • Operations in more than 200 countries.
  • Coca-cola accounts for approximately 1.3 billion
    servings worldwide of the 50 billion beverage
    servings consumed every day.

4
HISTORY
  • Coca cola was invented by john stith pemberton in
    1886 in Atlanta, Georgia.
  • The coca-cola formula and brand was bought in
    1889 by Asa Candler who incorporated the coca
    cola company in 1892.
  • Within four years, his merchandising flair helped
    expand consumption of Coca-Cola to every state
    and territory.
  • Under Robert W. Woodruff six decades of
    leadership , The Coca-Cola Company took the
    business to unrivaled heights of commercial
    success, making Coca-Cola an institution the
    world over.

5
 MISSION
  • The Coca Cola Company creates value by
    executing comprehensive business strategy guided
    by six key beliefs
  • Consumer demand drives everything we do.
  • Brand Coca Cola is the core of our business
  • We will serve consumers a broad selection of the
    nonalcoholic ready-todrink beverages they want
    to drink through out the day.
  • We will be the best marketers in the world.
  • We will think and act locally.
  • We will lead as a model corporate citizen.

6
VALUES
  • Coca-Cola is guided by shared values that both
    the employees as individuals and the Company will
    live by the values being
  • LEADERSHIP The courage to shape a better future
  • PASSION Committed in heart and mind
  • INTEGRITY Be real
  • ACCOUNTABILITY If it is to be, its up to me
  • COLLABORATION Leverage collective genius
  • INNOVATION Seek, imagine, create, delight
  • QUALITY What we do, we do well

7
VISION
  •  PROFIT Maximizing return to shareowners while
    being mindful of overall responsibilities.
  • PEOPLE Being a great place to work where people
    are inspired to be the best they can be.
  • PORTFOLIO Bringing to the world a portfolio of
    beverage brands that anticipate and satisfy
    peoples Desires and needs.
  • PARTNERS Nurturing a winning network of partners
    and building mutual loyalty.
  • PLANET Being a responsible global citizen that
    makes a difference.

8
Coco cola in India
  • Coca-Cola was the 1st international soft drinks
    brand to enter India in early 1970s.
  • Indian market was dominated by domestic brands,
    with Limca being the largest selling brand.
  • Cola was the largest selling flavor with market
    share of 40, Lemon drinks 31 and orange drinks
    only 19. 

9
Withdrawal from India
  • Up till 1977, Coca-cola was the leading soft
    drink brand in India.
  • But due to norms set by the Foreign Exchange
    Regulation Act (FERA), Coca-Cola left India and
    did not return till 1993 after a 16 year absence
    from the Indian beverage market.
  • FERA needed Coca-Cola to reveal its secret
    concentrate formula as well as reduce its equity
    stake which was not acceptable. 

10
  • Pure drinks, Delhi launched Campa-Cola, to take
    advantage of Cokes exit and by the end of 70s,
    was the only Cola drink in the Indian market.
  • In 1980, Parle, another major Indian player
    launched ThumsUp, the drink which till date is
    most popular soft-drink in India.
  • Pure Drinks strongly objected to ThumsUp being
    called a soft drink as it felt its taste is too
    strong.
  • For over a decade, Parle led the Indian
    soft-drinks market, with its market share
    reaching a peak of 70 in1990. 

11
Re-entry into the Indian Markets
  • Coca-Cola got the permission to enter the country
    with a 100 per cent unit in India.
  • On September 22, 1993, the company bought out
    the Parle brands.
  • As an entry strategy, CCI took over Parle Foods.
  • With a fine and detailed distribution network in
    place, Coke was now ready to take on archrival
  • Over a period of time, CCI also bought certain
    bottling units that earlier belonged to Parle or
    individual distributors.

12
  • In 1993, Thumps Up, Gold Spotand, Limca enjoyed
    around 75 share of the CSD market.
  • With the entry of Coke, CCI decided not to
    promote the cola brand they took over i.e., they
    decided to withdraw Thumps Up from the market.
    This however, did not pay off since the cola
    market was (and still is) highly polarized and
    people were unwilling to compromise on the taste
    of their preferred cola.
  • As a result, Cokes market share (Coke Thumps
    Up) fell to nearly 55. After 3 years of
    incurring losses, CCI finally took a decision to
    re-launch Thumps Up. This strategy paid off and
    today almost 59 of the market is governed by
    CCI.

13
MARKET SHARE
  • Coca-Cola is a leading player in the Indian
    beverage market with a 60 per cent share in the
    carbonated soft drinks segment, 36 per cent share
    in fruit drinks segment and 33 per cent share in
    the packaged water segment.
  • In 2004, Coca-Cola sold 7 billion packs of its
    brands to more than 230 million consumers across
    4,700 towns and 175,000 villages.
  • The company has doubled its volumes and trebled
    its profits between 2001 and 2004.

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16
  • Marketing Strategies of Cocacola India

17
Entry strategies
  • As an entry strategy, CCI took over Parle Foods
  • Acquisition of local popular Indian brands
    including Thums Up (the mosttrusted brand in
    India21), Limca, Maaza, Citra and Gold Spot
  • This combination of local and global brands
    enabled Coca-Cola to exploit the benefits of
    global branding and global trends in tastes while
    also tapping into traditional domestic markets.
  • Leading Indian brands joined the Company's
    international family of brands, including Coca-
    Cola, diet Coke, Sprite and Fanta

18
  • Product line soft-drink
  • Coca-cola
  • Sprite
  • Fanta
  • Diet coke
  • Limca
  • Maaza
  • Thums up

19
Target market
  • Diet coke weight consciousness
  • Maaza kids , juice loving people
  • Sprite young people
  • Thums-up confident, mature and uniquely
    masculine attitude people
  • Fanta girls, ladies

20
THUMSUP
  • Thums Up is a leading carbonated soft drink and
    most trusted brand in India.
  • Originally introduced in 1977, Thums Up was
    acquired by the Coca-Cola Company in 1993.
  • Thums Up is known for its strong, fizzy taste and
    its confident, mature and uniquely masculine
    attitude. This brand clearly seeks to separate
    the men from the boys. Mostly like by the
    youngsters specially boys.
  • The competitor of the brand on same category is
    Pepsi.

21
COCACOLA
  • Coca cola is the world's favorite drink. It is
    the world's most valuable brand and the most
    recognizable word across the world.
  • Coca-Cola has a truly remarkable heritage. From
    a humble beginning in 1886, it is now the
    flagship brand of the largest manufacturer,
    marketer and distributor of non-alcoholic
    beverages in the world.
  • The competitor on the cola category is Pepsi.

22
SPRITE
  • This brand is the one of the fastest growing
    brand in the country.
  • Sprite is liked by all age groups people. Jan
    09 report of The times of India claims sprite
    to be the second brand in sales after Thumsup
  • Competitor 7up Mountain dew

23
LIMCA
  • Limca is cloudy lemon in flavor. This is very
    unique in this category.
  • It has white in color.
  • Competitor Nimbooz , Lime merinda

24
FANTA
  • Fanta has two flavors apple orange. This is
    very popular drink among females.
  • The 'orange' drink of the Coca-Cola Company, is
    seen as one of the favorite drinks since 1940's.
    Fanta entered the Indian market in the year 1993.
    Over the years Fanta has occupied a strong market
    place and is identified as "The Fun Catalyst".
  • Competitor Mirinda, Parles Appy fizz 

25
MAAZA
  • This is mango flavor.
  • Maaza was launched in 1976. It is a drink which
    offered the same real taste of fruit juices and
    was available throughout the year.
  • In 1993, Maaza was acquired by Coca-Cola India
    and it currently dominates the fruit drink
    market.
  • Competitor Slice, frooti

26
MINUTE MAID pulpy orange
  • This is orange juice.
  • This contains no sugar added flavor.
  • This is a family drink.
  • Competitor Tropicana

27
KINLEY
  • This comes in two variety-mineral water soda.
    Mineral water is used by all but soda is commonly
    used for alcoholic purpose by adult people.
  • Competitor Aquafina, Bisleri

28
Intensive Brand Building
  • The company focuses on understanding the Indian
    consumer, and in using these local insights to
    build powerful connect for its brands.
  • popularity of cricket and movie stars
  • Activating local Indian festivals and occasions
  • Creating a distinct identity for each of its
    flagship brands
  • 'Coca-Cola' is the most recognised trademark,
    recognised by 94 of the world's population and
    is the most widely recognised word after "OK"

29
Product Positioning
  • THUMS UP
  • Thums up of coca cola is targeted to the
    adventurous and energetic people that are
    interested in adventure and love taking risk to
    succeed.
  • MINUTE MAID
  • Minute Maid of Coca cola are specially
    targeted to healthconscious customers and want
    health drink having natural energy in it.
  • FANTA
  • The drink is specially launched for the
    lady sector of the population and these drinks
    are positioned in that way only.

30
Market Segmentation
  • AGE
  • GENDER
  • RURAL VS. URBAN MARKET

31
BRAND LOCALISATION STRATEGY THE TWO INDIAS
  • INDIA A LIFE HO TO AISI
  • This designation Coca-Cola gave to the
    market segment including metropolitan areas and
    large towns represented 4 of the countrys
    population.
  • INDIA B THANDA MATLAB COCA COLA
  • INDIA B included small towns and rural
    areas, comprising the other 96 of the nations
    populations.

32
Distribution Strategy
  • Coca cola is worldwide famous for their
    Distribution channel. IN India the distribution
    network of Coca cola had 6.5lakh outlets across
    the country in 2000 .For the urban distribution
    channel these companies adopted the model like
    direct store distribution, broker warehouse
    distribution and Vending Food Service (VFS)
    systemswhere as these companies are following the
    Hub and Spoke model for rural distribution
    channel, in which they divided the different
    categories of distributors according to the area
    they are covering.

33
  • RURAL DISTRIBUTION CHANNEL
  • HUB AND SPOKE MODEL
  • DISTRIBUTION CHANNEL IN URBAN AREAS
  • Direct Store Distribution
  • Broker Warehouse Distribution (BWD)
  • Vending Food service (VFS) systems.

34
PRICE
  • To effectively achieve the stable balance between
    sales and covering the production cost
  • Company has priced the product same as that of
    its major competitor of the market leader

35
PROMOTION
  • PUSH STRATEGY
  • Coca cola is using Push strategy in which they
    use its sales force and trade promotion money to
    induce intermediaries to carry, promote and sell
    the product to end users i.e. consumers.
  • For example-as coca cola is giving free pet
    bottles and other trade schemes to distributors,
    agency owners and retailers.
  • PULL STRATEGY-
  • Coca-cola is also using Pull strategy in which
    they are using advertising and promotion to
    persuade consumers to ask intermediaries for the
    company brand product by this way coca cola
    inducing customer to order it from shopkeeper.
  • For example-Coca cola is using flanges, display
    racks, tier racks, standees, mobile hangers and
    visicooler brand strips.

36
SALES PROMOTION ACTIVITIES 
  • Coca-Cola Cricket
  • Coca-Cola Food Mela
  • Coca-Cola GO-RED
  • Coca-Cola Mc Donalds
  • Coca-Cola key account of MC Donalds launched
    the we go together joint promotion to reinstate
    amongst consumers a real sense of the affinity
    that, both shares globally.
  • The promotion kicked off with point of sales
    material (Danglers, Bunting etc) displayed at all
    MC Donalds restaurants along with a special
    offer for coke fries.

37
  • AVAILABILTY
  • Availability is done according the type of
    outlet.
  • ACTIVATION
  • Activation is important because it helps to
    boost the sales of the company. it is done
    through the Glow sign, Shelf display, flanges.
    Combo boards, Table tops .This boards usually
    gives to the ED outlets

38
  • WARM DISPLAY RACK
  • SHELF DISPLAY

39
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40
  • BRAND AMBASSDORS TV COMMERCIALS

41
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43
PLACE
  • Distribution channel
  • Supply chain of coca-cola
  • C F agent
  • Distributor
  • Retailer customer

44
FACTORS FOR SUCCESS
  • Diverse product portfolio
  • Brand building
  • Affordable entry price point
  • Strong brand pull
  • Ultra low cost model
  • Minimized internal capital requirements

45
Rural Market Scenario
  • The rural population in India accounts for around
    627 million, which is exactly 74.3 percent of the
    total population.
  • 1/3rd of countrys GNP
  • 450 districts, 6,30,000 villages approx.

46
Key to success in Rural India
  • Physical Distribution
  • Channel Management
  • Promotion and Marketing Communication

47
  • CCI began focusing on the rural market in the
    early 2000s in order to increase volumes.

48
The Decision was not surprising
  • Flat sales in urban markets.
  • Huge size of untapped rural market.
  • Improvement in income and spending power of rural
    people.
  • Better physical distribution channel.
  • Aspirations for urban lifestyle.
  • Increased awareness due to television reach.

49
Challenges for Coke
  • Poor rural Infrastructure.
  • Erratic power supply.
  • Different consumption habits.
  • Preference for traditional cold beverages
    (lassi,lemonade).
  • Price of the branded beverages.

50
CCIs Rural Mktg. Strategy
  • Three As
  • Availability
  • Capacity expansion 25 prod. lines and doubled
    bottle capacity.
  • Unique and different distribution strategy
    hub spoke distribution.
  • Coverage of 1,58,342 villages by Aug. 2003
    (81,383 in 2001).
  • 2,00,000 refrigerators to rural retailers.
  • Affordability
  • Introduction of 200ml bottle (chota coke).
  • Priced at Rs. 5, closed the gap between Coke and
    basic refreshments.
  • Acceptability
  • Mass media marketing.
  • Launched TVCs targeted at rural consumers.

51
  • Coke realized that the communication media used
    in urban markets would not work in villages
    because of low penetration of conventional media.
  • Way out...
  • Outdoor advertising and hoardings, etc.
  • Participation in weekly mandies, haats, fairs.
  • Increased ad-spend on Doordarshan .

52
Importance of Advertising in Rural Marketing
  • The low level of education that creates problem
    in brand identification. Since they can not read
    the brand names and price tags it makes it easier
    for the clones to launch brands similar in label
    and design and spoil the brand image.
  • Unscrupulous retailers are taking the benefit and
    damaging the perception of the brands before they
    actually enter in to the rural market.
  • It helps in acceptability of the product.
  • It helps in market penetration.
  • To strengthen the brand image of the product.

53
Issues to focus.
  • Pesticides Issue and building confidence .
  • Infrastructure in distribution network.
  • Competing with local brands
  • Advertisement spending
  • Diversification

54
Rural market is more comfortable..
  • Huge market
  • High growth in terms of sales
  • Change in the life style
  • Increase in the per capita income
  • It can substitute other products

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56
Swot analysis
57
SWOT Analysis
  • STRENGTHS
  •  
  • Coke Company has a good market reputation and a
    strong distribution network.
  • Coke is having a multi brand strategy ad is
    looking for a great volume opportunity in India.
  • Coke is presently no. 1 player in Indian
    Carbonated soft drinks market.
  • Coke was born 11 year before Pepsi (in 1987) ad a
    century later still maintains that pioneering
    least.
  • Pepsi and coke both have good brand image.
  •  
  • WEAKNESS
  •  
  • Coke has less no. of retailers
  • Less force - it has less no. Have owned bottling
    plant.
  • It has not planned for setting up of any new
    plants where their competitor has planned to set
    up several new plants.

58
  • OPPORTUNITY
  •  
  • A rapidly growing market, which is expanding _at_
    205 every year.
  • It can take the market very well with the new
    investment of Rs. 2400 corers.
  • It can give a big jerk to its major competitor
    Pepsi it can increase its number of fountain to a
    sizeable amount.
  • Increasing trend of cold drink of different
    brands.
  •  
  • THREATS
  • It has a continuous threat from Pepsi as well as
    various other local soft drinks.
  • Coke has a major market than Pepsi between the
    teenager as well as the student due to
    advertisement of world cup cricket.
  • A large amount of expenses on the advertisement.
  • There is no proper policy of distributing the
    merchandising assets of the company to the
    retailers.
  • The company should search the new target market
    to expand the market share in this competitive
    era.
  • To meet the demand of the customers the company
    should set up the new plants as its competitors
    are planning to set up.
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