application of consulting tools on coca cola
TRANSCRIPT
INTRODUCTION
The Coca-Cola Company The Coca-Cola Company (NYSE: KO) is the world's largest beverage company, refreshing con-sumers with more than 500 sparkling and still brands and more than 3,800 beverage choices. Led by Coca-Cola, one of the world's most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, 18 of which are available in reduced-, low- or no-calorie options. The billion-dollar brands include Diet Coke, Coca-Cola Zero, Fanta, Sprite, Dasani, vitaminwater, Powerade, Minute Maid, Simply, Del Valle, Georgia and Gold Peak.
Through the world's largest beverage distribution system, Coca-Cola is the No. 1 provider of both sparkling and still beverages. More than 1.9 billion servings of its beverages are enjoyed by con-sumers in more than 200 countries each day.
Coca-Cola IndiaOver the last 23 years, ever since its re-entry in 1993, the company has gone on to estab-lish an unmatched portfolio of beverages; refreshing con-sumers with its leading bever-age brands like Coca-Cola, Coca-Cola Zero, Diet Coke, Thums Up, Fanta, Fanta Green Mango, Limca, Sprite, Sprite Zero, VIO Flavored Milk, Maaza, Minute Maid range of juices, Georgia and Georgia Gold range of hot and cold tea and coffee options, Kinley and Bonaqua packaged drinking
water, Kinley Club Soda and BURN energy drink.
The Company along with its bottling partners, through a strong network of over 2.6 million retail outlets, touches the lives of millions of consumers. Its brands are some of the most preferred and most sold beverages in the country.
THE PRODUCT PORTFOLIO
BCG Matrix Analysis for Coca-Cola India
We use the BCG Matrix to analyse the product portfolio of Coca-Cola India, with an underlying as-sumption that there will be high-growth products in need of cash inputs and low-growth products that generate excess cash to ensure long-term success.
The illustration below will help us recognise the profit and growth potential of some products of the company:
Cash Cows
These are
products that are extremely profitable and require no extra effort or investment to main-tain the status quo.
KINLEY
Brand Market Share
Maaza 37.9%
Frooti 33.0%
Slice 10.1%
Minute Maid 7.4%
Others 11.6%
In 1999, the total annual bottled water consumption in the country was 1.5 billion litres and the market was growing at compound annual growth rate (CAGR) of 25%. Coca-Cola entered this market with its purified mineral water ‘Kinley’ in August 2000. Kinley was introduced at a time when the generic name for bottled water was ‘Bisleri’
The industry will be worth approximately INR 160bn (~USD 2.67billion) by FY 2018, growing at CAGR of ~22%. Kinley holds a strong position, and is the second strongest player with a market
share of 25%.
MAAZA Introduced in 1970s, Maaza has today come to symbolize the very spirit of mangoes. Universally loved for its taste, color, thickness and wholesome properties, Maaza is the mango lover's first choice.The industry has a CAGR of 15% and Maaza dominates the market as seen below: Stars
MARKET SHARE
LARGE
SMALL
MARKET GROWTH HIGHLOW
CASH COW
KINLEY MAAZA
STAR
MINUTE MAID
DOG
FUZE
QUESTION MARK
VIO
These are products that enjoy a relatively high market share in a strongly growing market. They are profitable and may grow further and hence it is advisable to in-vest in these products.
MINUTE MAID
Minute Maid – one of the world's largest juice and juice drink brands. The history of the Minute Maid brand goes as far back as 1945 when the Florida Food Cooperation developed orange juice powder. The positioning is that of a juice brand, and at INR 10.90 bn, the market is stipulated to grow at a CAGR of 17%. However
Minute Maid has a lot of market potential to capture as the size of the unorgan-ised juice market stands at 75%.
Dog
FUZE Growing urbanisation coupled with rising disposable incomes continued to pave the way for strong growth in RTD tea during 2015. However, the popularity of RTD tea remains restricted primarily to young urban consumers who are looking for a health-ier alternative to carbonated beverages. RTD tea continued to struggle to gain at-tention among Indian consumers over the review period.
Hindustan Unilever Ltd continued to lead RTD tea in 2015 with a retail value share of 80%. The company continues to enjoy first-mover advantage for its Lipton Ice Tea brand. Hindustan Unilever commenced distribution of Lipton Ice Tea by extend-
ing its international alliance with PepsiCo into India in 2004. There is not much com-petition in the category and this enabled the company to maintain its dominant value share.
Consumers who are willing to experiment with new flavours and look for alternatives to carbonated drinks are the most likely to try out RTD tea. However, the popularity of RTD tea in India is likely to remain restricted to consumers residing in urban centres such as Delhi, Bangalore, and Mumbai during the forecast period due to the limited distribution and low awareness of RTD tea as a prod-uct.
Question Mark Are products that have high growth but small market share, and so their growth rate is uncertain. Investments to generate further growth may or may not yield big results in the future. Additional investigation into how and where to invest is advised.
VIO VIO marks Coca-Cola India’s entry into the value added dairy category. It is the 1st ready-to-drink flavored milk product launched by the Company in India.The flavoured milk market in India is expected to grow at a rate of 21-26% and is currently estimated to be at INR 500 mn. The major player with over 80% mar-ket share is Amul, others include- Mother Dairy, Vadilal and so on.
Vio is available in select locations across India and must find a marketing & distri-bution strategy that will enable it to penetrate this market.
50%37%
5%8%
Organised Juice Market
Real TropicanaMinute Maid Others