Group MembersNisha Prabhu - (123)

Pranav Rane - (128)

Manasi Raut - (129)

Brinda Sanghavi - (139)

Toshish Sarode - (140)

Charmi Shah - (146)

Road Map1886

1889

1891

1892

1930

2015

Invented by pharmacist John Stith Pemberton in Columbus, Georgia

Formula and brand were bought by Asa Griggs Candler Company started operating a franchised distribution system

Coca Cola’s first bottling occured

Asa Griggs Candler incorporated The Coca-Cola Company

Company started moving Gobally

Based on Interbrand's best global brand study, Coca-Cola was the world's 3rd most valuable brand.

1920• It entered China

1927• Two bottling production plans were opened in Shanghai and

Tianjin

1930• Another plant in Qingdao

1946• Plant in Guangzhou

1949• Cola had to withdraw all of its plants from china

1978• the 'open door policy' was announced by Deng Xiaoping

1979• Cola made a re-entry in China

3 Stage Mode of EntryFirst stage

1979-84

Second stage 1985-92

Third stage 1993-present

Franchise

Joint Venture

Hybrid

Political Analysis• Bureaucracy, corruption & lack of transparency• Benefits of Open Door Policy

Economic Analysis• GDP :- $ 14.54 trillion

• Inflation major problem

Social Analysis• Coca- Cola means “Bite the wax tadpole”• Changed to “ K’o K’ou K’o Le”• Changing lifestyle of people

Technological Analysis

• Large number of R&D institutions• Technology leads to production of new and

innovative cans, bottles, etc

Marketing Strategy

Product positioning and Market segmentation

Strategic marketing mix Product Price

Staffing Policy Ethnocentric Polycentric(local) Geocentric

Case study

AIM RESULT

EXECUTION

Mode of Entry of Coca-Cola

1950-52

19771993

1999

2002Set up the first

bottling plant in ND

Leaves India

Acquires Parle brands and Thums Up

Introduces Sprite, Diet

Coke

Thums Up emerges as

the country's No.1 SD

Political AnalysisBeat Congress and Janata Dal came to power

Demanded secret formula of Coca Cola

Also ordered the company to dilute 60% of its stake

Economic Analysis

GDP AGR– 7.1 % (2016),

7.9% (2015)

GDP - $ 2 Trillion

GDP GR – 1.4%

(2016), 2.0%

(2015)

App. GR in soft drink

Ind.- 7%

Social Analysis• include the social, religious, and culture 

• demographics aspects, such as the average age and income of the population, level of education

Technological Analysis

• India has strongest IT sector in the world

• technology helps in production of stylish, colourful cans and bottles which attracts the children and youth and thus becomes a marketing tool for Coca-cola

COKE Pesticide Controversy 2003

• On Aug 5, 2003 CSE issued a news that states soft drink brand contain a deadly cocktail of pesticides

• Pesticide residue was 24 times above limit set by BIS

• In Calcutta , the level of pesticide exceed the bureau’s standard by 140 times

Protest against Coca Cola

Market Positioning In India

1. Price strategy Trade Promotion• incentives given to the middle men• Agreements with shop keepers and stores Different price in different seasons• Product prices are changed according to

the season• Reduce the price in winters

2. Promotion strategies• CSR activities Eg support my school

• Endorsing through top celebrities

• Associating with Mcdonalds

• Associating with cricket, cinema and music

• Adopted dual strategy of jingles and celebrity endorsement

OperationsCoca cola follows two types of distribution strategy :-

1. Direct selling 2. Indirect selling

Conditions that increase the risk of

substitutesSwitching Cost

Product Quality

Product Price

Product Performance

Substitute Availability

Factors that determine strength of Buyers

Switching cost

Availability of Substitutes

Buyer Concentration

Price Sensitivity

Undifferentiated Products

Threat of New Entrants

• If the firms in the industry are profitable then, the industry becomes a magnet to new entrants.

• Loyalty of end users• Access distribution channels• Skilled labour• Capital requirement

Bargaining power of supplier

• Supplier industry dominated by few firms

• Suppliers’ product has few substitutes

• Suppliers’ product is important to the buyer

• Buyer is not important to the supplier• Suppliers’ product has high level of

switching cost

IndiaRivalry •Pepsi

Substitutes •Tea, Coffee, Juices•Flavored milk, Energy drinks

Bargaining power of supplier

•Low

New Entrants •Wild Water with vitamins

Bargaining power of buyers

•High

ChinaRivalry •Pepsi

•Future Cola

Substitutes • Fruit juices, Vegetable juices• Tea-related beverages (bottled Wulong Tea), Bottled water (Kangshifu, Binglu).

Bargaining power of supplier

•Low

New Entrants •President Enterprises (China) Investment Co Ltd(Sea Salt & Calamansi),•Guangdong Robust Corp.(Mizone Rose & Grape)

Bargaining power of buyers

•High

Recommendations & Conclusions

• Focus on Driving Revenue & Profit Growth.1. Use segmented revenue growth strategies.2. Align employee incentives.3. Increase volume, keep beverages affordable.4. Increase in price/mix to increase revenue.

• Invest more in Brands and Business.1. Increase both the quantity and quality of advertising.2. Improve position in the energy drink category.3. Global marketing campaign.

Cont.• Become More Efficient.1. Cut spending on non media marketing.‑2. Innovations in the retail and supply chain.3. Productivity and continuous savings.4. Empower employees.

• Refocus on Core Business Model1. Maintain leadership status as the world’s most sophisticated system

of independent bottling partners.