COCA COLA

Marketing Management II Project

CONTENTSIntroduction

Product Strategy

Price Strategy

Promotion Strategy

Place Strategy

SWOT Analysis

Future Plans

Recommendations

INTRODUCTION

• The Coca-Cola Company was established in 1886 by Dr John S. Pemberton.

• Today it has presence in over 200 countries and head office located in Atlanta, USA.

• Produces over 300 beverage brands with more that 1.06 billion drinks consumed per day.

• Was the leading soft drink in India till 1977 when govt. policies necessitated its departure.

In Context of India

• It returned to India in 1993 and over the past 10 years has captured the imagination of India.

• Strongly associated with cricket it also sponsored the 1996 World Cup.

• It provides employment to approx. 6000 people and indirectly creates employment for 125000 people.

• The vast Indian operation comprises 25 company-owned bottling operations and another 24 franchisee-owned bottling operations.

PRODUCT STRATEGY

Product Glass Pet Can Fountain

Coco-Cola 200ml, 300ml,500ml, 1000 ml

500ml, 1.5 L,2 L, 2.25 L,500ml + 100ml

330 ml Various Sizes

Thums Up 200ml, 300ml,

500ml, 1000 ml

500ml, 1.5 L,2 L, 2.25 L,500ml + 100ml

330 ml Various Sizes

Fanta 200ml, 300ml 500ml, 1.5 L,2 L, 2.25 L,500ml + 100ml

330 ml Various Sizes

Limca 200ml, 300ml 500ml, 1.5 L,2 L, 2.25 L,500ml + 100ml

330 ml Various Sizes

Sprite 200ml, 300ml 500ml, 1.5 L,2 L, 2.25 L,500ml + 100ml

330 ml Various Sizes

Maaza 200ml, 250ml 250ml, 600ml,1.2 L

Kinley 500ml, 1000ml

Minute Maid

Pulpy Orange

400ml, 1L,

1.25 L

PRICING STRATEGY• All the soft drinks product of the company except MAAZA have the same

prices on all the different sizes. E.g.: 200ml is available at Rs.8 300ml is available at Rs.12

500ml is available at Rs.22 2 liter is available at Rs. 60

• Maaza:

PET 1.2l

600 ml

200RGB

250RGB

250 ml PET

Pocket Maaza 200ml

45 25 8 10 15 15

• Coke is sold in various stores like retail stores petrol

stations etc.

• The pricing methods are set by the company. Usually the prices are fixed.

• Now off late, they have also got into Psychological pricing.

• For example, for a pack of 5 cans of Coca-Cola soft drinks it is priced at Rs.99 instead of Rs.100.

• 10% discount have been given in the big retail outlets only in case of 1lt. and 2lt. pack.

• Also just after the summers, 2 liter bottles are available in

bundles of 2 with a selling price of Rs 85 instead of Rs 110 in big retails like Big Bazaar, Reliance Mart etc.

• Pricing in rural market: Coca-Cola has introduced Sun fill, a powdered soft-drink concentrate. The instant and ready-to-mix Sunfill is available in a single-serve sachet of 25 gm priced at Rs 2 and multiservice sachet of 200 gm priced at Rs 15

PROMOTION STRATEGYPROMOTION STRATEGIES:

Getting shelves Eye Catching Position  Sale Promotion UTC Scheme

FACILITATING THE PRODUCT BY INFRASTRUCTURE :

FreezersDisplay racks

ADVERTISEMENT:

Coca cola company use different mediums

Print media

Pos material

TVC

Billboards and holdings 

RURAL MARKETING STRATEGY

• CCI's rural marketing strategy was based on, Three A's - Availability, Affordability and Acceptability.

• The company opted for a hub and spoke distribution system to market in rural areas.( stock was transported from the bottling plants to hubs and then from hubs, the stock was transported to spokes which were situated in small towns.)

• Large trucks for transporting stock from bottling plants to hubs and medium commercial vehicles transported the stock from the hubs to spokes. Stock from spokes to village retailers the company utilized auto rickshaws and cycles.

• It made an investment of Rs 7 million to meet rural demand.

DISTRIBUTION STRATEGY• To reach out to rural India, Coke started out by drawing up

a hit list of high potential villages from various districts.

• Full load supplies were offerd twice weekly against payment by demand draft.

• On their part, the distributors (large) appointed smaller distributors (Spokes) in adjoining areas.

• The smaller distributors undertook fixed journey plans on a weekly basis and supplied against cash.

'THANDA' GOES RURAL

• Coke realised that the communication media used in cities and urban areas would not work in villages because of low penetration of conventional media.

• Coca Cola India also lauched television commercials (TVCs) targeted at rural consumers specially on DOORDARSHAN.

• When Coca Cola launched Chota Coke in 2002 price at Rs. 5, it bought out a commercial featuring Bollywood actor Aamir Khan to communicate the messages of the price cut and the launch of 200 ml bottles to the rural consumers.

• In 2003, Coca Cola India came up with a new commercial

featuring Aamir Khan. The commercial aimed at making coke a generic name for ‘Thanda.’

• Between March and September 2003, Coca Cola India launched three commercials with the “Thanda Matlab” coca cola.

• All the three commercials aimed to make rural and semi-urban consumers connect with Coca-Cola. First ad featured Aamir Khan as a ‘Tapori’. Second ad featured Aamir Khan as a ‘Hyderabadi shop-keeper’. Third commercial featured Aamir Khan as a ‘Punjabi Farmer’.

• ‘Thanda’ usually means lassi or nimbu pani, ‘garam’ is essentially tea. Because the character, in itself, represented a culture, they wanted to equate Coke with ‘Thanda’, since ‘Thanda’ too is part of the popular dialect of the north.

• Thus making ‘Thanda’ generis for Coca-Cola, with the long-playing possibilities of the “Thanda’ idea becoming evident, ‘thanda’ became the central idea. Once we decided to work on that idea, in the creative mind just opened up.”

PLACE STRATEGY• The corporate body located at Gurgaon governs the five

zones covering whole India.

• Namely: Northern, Eastern, Southern, Western and Andhra Pradesh zone.

• Warehouses efficiently manages thousands of cases produced each day.

DISTRIBUTION

CHANNEL

Supply Chain of Coco-Cola

C&F Agent

Distributor

Retailer

ConsumersConsumers

The retail outlet in India can be categorized into-:

• Shopping malls

• Departmental stores

• Grocery stores

• General purpose stores

• Food stores

• Pan shops

• Chemist/Drugs stores

SWOT Analysis. Strength:

• Strong Brand Name• Corporate Identity• Global Distribution• Advertisement of Coke• Innovation• Local Approach• Backward Integration• Financial Stability

Weakness:• Pesticide Scandal• Sales in India

Opportunities:• Possible Growing Demand• Coco Cola’s Bottling System• Sufficient Capital• Expansion into New Market

Threats:• Competition• Pesticide Matter• Soft Drink not being the first preferred drink.

FUTURE PLANS:• Coverage

• Increasing the per capital consumption of its beverages

• Expanding its distribution network

• Creating an ultra low cost model lowering cost of goods sold and fixed cost.

Recommendations: Product Strategy:

• Should bring health and energy drinks• More varieties

Pricing Strategy:• Products in small packages costing Rs. 3(just like Frooti

successfully did)

Promotion Strategy:• Using marketing strategies that sends social messages.

This will help in improving the goodwill of the company.

Thank you for your patience

Queries??