about coca-cola company

8/3/2019 About Coca-Cola Company

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About Coca-cola company

The Coca-Cola Company is the world's largest beverage company.

Coca cola is largest manufacturer , distributor and marketer of non-alcoholicbeverage concentrates and syrups in the world and is one of the largestcorporations in the United States.

The company is best known for its flagship product Coca cola.

Coca-Cola currently offers nearly 400 brands in over 200 countries orterritories and serves 1.5 billion servings each day.


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Coca-cola India

Sanjiv Gupta, President and CEO of Coca-Cola India, joined Coke in 1997as Vice president.

Coca-Cola was the leading soft drink brand in India until 1977 when it leftrather than reveal its formula to the government and reduce its equity stake

as required under the Foreign Exchange Regulation Act.

Interbrands Global Brand Scorecard for 2003 ranked Coca-Cola the No. 1Brand in the World and estimated its brand value at $70.45 billion.

With an investment of more than US$1 billion in India from 1993 to 2003,Coca-Cola India announced plans to double its capacity at an investment of$125 million between September 2002 and March 2003 which wasencouraged by its performance in 2002, thus making it one of the countrystop international investors.


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International expansion Cokes first international bottling plants opened in 1906 in Canada, Cuba,

and Panama. By the end of the 1920s Coca-Cola was bottled in twenty-seven countries

throughout the world.

Coca cola uses local bottles, caps, machinery, trucks, and personnelcontributed to Cokes challenges as well with a lack of standard processes

and training degrading quality. Coca-Cola continued working for over 80 years on Woodruffs(Former CEO)

goal: to make Coke available wherever and whenever consumers wanted it.

Woodruffs patriotic commitment that every man in uniform gets a bottle ofCoca-Cola for five cents, wherever he is and at whatever cost to our

company14 was more than just great public relations. Coca-Cola was exempt from sugar rationing and also received government

subsidies to build bottling plants around the world.


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Slogans of Coca-colaFrom the beginning, Coke understood the importance of branding and the

creation of a distinct personality.

Its the real thing (1942)

Things go better with Coke (1963)

Coke is it (1982)

Cant beat the Feeling (1987)

Cant beat the real thing (1992)


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The Indian beverage market.

In India per capita consumption of soft drink is very low which made it a highlycontested prize in the global CSD market in the early 21st century. Coke and

Pepsi dominated the market and together had a consolidated market shareabove 95%. While soft drinks were once considered products only for theaffluent, by 2003 91% of sales were made to the lower, middle and uppermiddle classes. Soft drink sale in India grew 76% between 1998 and 2002 andwere expected to grow at least 10% per year through 2012.

With its large population and low consumption, the rural market represented asignificant opportunity for penetration and a critical battleground for marketdominance. In 2001, Coca-Cola recognized that to compete with traditionalrefreshments including lemon water, green coconut water, fruit juices, tea, andlassi, competitive pricing was essential. In response, Coke launched a smallerbottle priced at almost 50% of the traditional package.


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Marketing strategy

In 2001, Pepsi had already captured the Indian market, Coke India attempt to

gain leadership in the Indian market and capitalize on significant growthpotential, particularly in rural markets with its new strategy grounded brandpositioning and marketing communications. They projected differentperceptions that how rural and urban consumers approaches the market forrefreshment.

In rural markets, where both the soft drink category and individual brands were

undeveloped, the task was to broaden the brand positioning while in urbanmarkets, with higher category and brand development, the task was to narrowthe brand positioning, focusing on differentiation through offering unique andcompelling value. This lens, informed by consumer insights, gave Cokedirection on the tradeoff between focus and breadth a brand needed in a givenmarket and made clear that to succeed in either segment, unique marketingstrategies were required in urban versus rural India.


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Brand Localization Strategy: The Two Indias

India A: Life ho to aisi

This was the successful and relevant tagline found in Coca-Colas advertisingto this audience in metropolitan areas and large towns, represented 4% ofthe countrys population, where they introduce 300ml bottle for Rs.10

India B: Thanda Matlab Coca-Cola

India B included small towns and rural areas, comprising the other 96% of thenations population, where they launched new 200ml bottle for Rs.5

Cokes advertising and promotion strategy pulled the marketing plan togetherusing local language and idiomatic expressions. As a result of the Thanda

campaign, Coca-Cola wonAdvertiser of the Yearand Campaign of the Yearin2003


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Thanda Matlab Coca-Cola Advertising Campaign, Print Media


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Corporate Social ResponsibilityAs the largest and global companies in the world, they take their responsibilityseriously to positively affect the communities in which it operated.

They made efforts towards good citizenship in the areas of community, byimproving the quality of life in the communities in which they operate.

The Company employed 7000 citizens and believed that for every direct job,30-40 more were created in the supply chain.

In addition to outreach efforts, the company committed itself to environmental

responsibility through its own business operations in India including : -

Environmental due diligence before acquiring land or starting projects

Environmental impact assessment before commencing operations

Ground water and environmental surveys before selecting sites

Compliance with all regulatory environmental requirements

Ban on purchasing CFC-containing refrigeration equipment

Waste water treatment facilities with trained personnel at all company-owned

bottling operations

Energy conservation programs

50% water savings in last seven years of operations


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Problem and challenges.

After their strong position and relationship in market they faced with newproblem and challenges.

The main problem was that they uses pesticides while making their beverages.

On 5th august,2003 The Center for Science and Environment (CSE) issued apress release stating "12 major cold drink brands sold in and around Delhicontain a deadly cocktail of pesticide residues. According to tests conducted bythe Pollution Monitoring Laboratory (PML) of the CSE from April to August,

three samples of twelve PepsiCo and Coca-Cola brands from across the citywere found to contain pesticide residues surpassing global standards by 30-36times including lindane, DDT, malathion and chlorpyrifos (See Exhibit 2). Thesefour pesticides were known to cause cancer, damage to the nervous andreproductive systems, birth defects, and severe disruption of the immune

system.After this the Indian government banned Coke and Pepsi products in

Parliament and state governments launched independent investigations,sending soft drink samples to labs for testing. The Coca-Cola bottelingcompany stock down by 5$ on New York stock exchange from $55 to $50.


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Cont.Pepsi and Coca-Cola called the CSE allegations baseless and questioned themethod of testing but the CSE claimed it had followed standard procedures

documented by the US Environmental Protection Agency including GasChromatography and Mass Spectrometry.

Both Pepsi and Coca-Cola were ready to file a case with high court questioningthe credibility of CSEs claims, while Sanjiv gupta (CEO and President of coke)

commented: The allegation is serious and it has the potential to tarnish the

image of our brands in the country. If this continues, we will consider legalrecourse.

Coke and Pepsi denied the validity of CSEs claims and threatened legal action, then a survey conducted in Delhi and after few days CSE announced theresult of survey and it found that the majority of consumers believed the

findings were correct and agreed with parliaments move to ban the sale of softdrinks. It was clear that the $1 billion Indian soft drink market was at stake andGupta had to act.


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Decrease in sales.

Sales had dropped by 30-40% in only two weeks on the heels of a 75% five-year growth trajectory and 25-30% year-to-date growth. Many leading clubs,retailers, restaurants, and college campuses across the country had stoppedselling the products of Coca-Cola.


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Pesticide Content in Twelve Leading Soft Drink Brands


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Coca-cola key to success:

Coke India CEO Sanjiv Gupta and his team had to decide how to rebuild

public trust and had to weigh a larger policy decision at the same timetaking on a leadership role and help create higher standards for food andbeverage safety.

Following are the key decision implemented:-

1. Communicate openly with key constituents, including the public, media,employees, franchisees, the trade/channel, state and national government,CSE and suppliers with a spirit of partnership and a willingness to resolve theissue in a way that benefits the Indian consumer.

2. Attempt to collaborate with the CSE, acknowledging that your goals may becloser together than you initially imagine. Take the time to discover their truemotivation, ultimate goal, and ideal outcome. Recognize the enormousreputational benefits that could come from such a partnership, or even awillingness to partner.


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Cont...

3. Choose to differentiate as a socially responsible company. Take advantage ofan opportunity to demonstrate leadership in a sphere that is critically importantto your key constituents.

4. Recognize the upside for reputational risk on a corporate level if the situation

can be turned into a positive.

5. Launched Coca-Cola eKO Management System to educate the public, thegovernment, and the media about environmental stewardship activities, aboutthe framework implemented by Coca-Cola India to transform the principle ofoperating in ways that Protect, Preserve and Enhance the Environment inactions.

about coca-cola company

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