A REPORT ON COCA-COLA

2009Nalanda Institute of Advanced Studies

RUPES DEY

ACKNOWLEDGEMENT

No task is a single man’s effort as there are various factors, situations, and people combine together to form the background for the accomplishment of any task.

This report bears the imprint of some very important people, from my institution, Nalanda Institute of Advanced Studies, who are directly or indirectly related in shaping up this report. I am highly grateful and sincerely acknowledge valuable contributions imparted by these imminent people towards the completion of this report.

Most importantly, I deeply want to express my profound gratitude and thankfulness to Mr. Ankur Majumdar, faculty guide, Nalanda Institute of Advanced Studies for having faith in my endeavors and abilities. Knowledge gained from him will always inspire and encourage me to scale new heights in the future.

I would also like to thank Mrs. Monalisa Choudhury, Director, Nalanda Institute of Advance Studies, for giving me an opportunity to work in this report and help in fulfilling the objectives of the report and all the valuable lessons that I have learnt on the way.

Rupes Dey

N.I.A.S.

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CONTENTS

Objective of the study 4

Scope of the study 4

Significance of the study 5

Executive summary 5

Company overview 6

Product of Coca-Cola India 9

Production process 10

Marketing mix 11

Product 12

Promotion 13

Positioning 14

Price 14

Pricing strategy 15

Pricing methods 15

Packaging 16

Branding 16

Place and distribution 17

Distribution system 18

Departments involved in the distribution process 19

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Comparison of Coca-Cola and Pepsi 19

Market analysis 20

SWOT analysis 21

Strengths 22

Weaknesses 22

Opportunities 23

Threats 24

Values 25

Mission 26

Financial datasheet of Coca-Cola 28

Conclusion 31

OBJECTIVE OF THE STUDYPage | 3

To know effectiveness of the marketing strategy, sales promotion, and distribution of Coca-Cola in market.

To know the market share of Coca-Cola.

To ensure the availability and visibility of product.

To study the “RED” activation on outlets of Coca-Cola Company.

SCOPE OF THE STUDY

To find out problem of the counters and to find out their requirement for more sales.

About market share of Company comparison to Pepsi.

Through this study Company will know about the availability of its products in the Market.

About RED activation score of outlets and what are the reasons for low RED score.

SIGNIFICANCE OF THE STUDY

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This study is helpful to find out the sales trends of the Coke products and its effect on consumers value and satisfaction.

This study provides an insight to the company that what kind of strategy must be adopted in order to increase the sales and satisfaction of consumers.

EXECUTIVE SUMMARY

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John Styth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three legged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continuous to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveals its formula to the Government and reduces its equity stake as required under the Foreign Regulation Act which governed the operations of foreign companies in India. In the new liberalized and deregulated environment in 1993, Coca-Cola

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made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. The main objective of this study lies in understanding the organization and studying and understanding the consumers’ perception and opinion about the latest product, Minute Maid Pulpy Orange, introduced into India, by the Coca-Cola Company. A consumer sampling involving 5.5 lakh people was conducted in a span of 30 days across major cities in order to give the product the required marketing push and to recognize the prospective consumers and their opinion in order to develop and market the product in a better way in the near future.

COMPANY OVERVIEW

The Coca-Cola Company is the world's largest beverage company, largest manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups in the world and is one of the largest corporations in the United States. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886.

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The Coca-Cola Company focuses on the non-alcoholic beverage market, producing a range of drinks around the world. It is the world’s leading manufacturer, marketer, and distributor of non-alcoholic beverages, primarily carbonated soft drinks. The company is active in more than 200 countries, with the help of directly controlled subsidiaries, partnerships and franchising, thus making it a truly global company. The company sells over six million beverages every day.

Coca-Cola, also known as Coke, is a carbonated, sweetened soft drink that is sold in most countries, and is the world's best-selling soft drink. It is often called a leading global brand. The company's headquarters are in Atlanta, Georgia.

The Coca-Cola formula and brand was bought in 1889 by Asa Candler.

Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.5 billion servings each day.

Coca-Cola was first sold in bottles on March 12, 1894. It was first sold in cans in 1955. During the first year, sales were about only nine drinks per day. Dr. Pemberton did not think he could make a lot of money with the drink he invented, so he sold parts of his business to different people. Just before he died in 1888, he sold the rest of his Coca-Cola business to Asa G. Candler. Mr Candler, together with some other businessmen, started the Coca-Cola Company.

By 1888, three versions of Coca-Cola—sold by three separate businesses—were on the market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an ongoing addiction to morphine , Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling his own version of the product.

John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out of the business. Candler purchased exclusive rights to the formula from John Pemberton, Margaret Dozier, and Woolfolk Walker. However, in 1914, Dozier came forward to claim her signature

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on the bill of sale had been forged, and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well.

The drink is called "Coca-Cola" because of the coca leaves and kola fruits that were used to add flavor. Dr. Pemberton's partner and bookkeeper, Frank Robinson, suggested the name "Coca Cola" because he thought using the letter C twice would look better than if they used a K in the word "Cola". He then wrote down the name to use as a logo that is now very famous.

The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola Company only produces a syrup concentrate, which it sells to bottlers throughout the world who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners and then carbonate it before putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors.

The equally famous Coca-Cola bottle, called the “contour bottle” within the company, but known to some as the “hobble skirt” bottle, was created in 1915 by bottle designer Earl R. Dean. In 1915, the Coca-Cola Company launched a competition among its bottle suppliers to create a new bottle for the beverage that would distinguish it from other beverage bottles, “a bottle which a person could recognize even if they felt it in the dark, and so shaped that, even if broken, a person could tell at a glance what it was.” By 1920, Dean's contoured bottle became the standard for the Coca-Cola Company. Today, the contour Coca-Cola bottle is one of the world's most recognized packages in the world..."even in the dark!”

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PRODUCTS

The Coca-Cola Company offers a wide range of products to the customers

including beverages, fruit juices, and bottled mineral water. The Company is

always looking to innovate and come up with, either complete new products or

new ways to bottle or pack the existing drinks. The following products are

marketed by HCCBPL:

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PRODUCTION PROCESS

MANUFACTURING PROCESS

The manufacturing of the products of Coca-Cola involves the following steps:

Water is received from the River Cauvery and it passes through the water

treatment plant, further passing through the sand filter and the activated carbon

filter, so as to attain pure cleansed water.

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In the syrup room, the concentrate received from another bottling plant situated

at Pune, is blended with the sugar syrup

Once both the water and the final syrup are ready, they are both mixed together

and sent to the carbonator section where Carbon Dioxide is added to the

mixture to form the final product.

On the other hand, simultaneously, the returnable glass bottles are inspected,

and washed for the purpose of filling in the final product in it. This step does

not take place in the PET bottle line as the bottles once used are disposed.

The product is finally filled in the bottles, crowned (in case of RGB)/ capped

(in case of PET bottles), labeled and cased in order to be sent into the

warehouse for distribution.

MARKETING MIX

The marketing mix is probably the most crucial stage of the marketing planning process. This is where the marketing tactics for each product are determined. The marketing mix refers to the combination of the four factors (price, promotion, product, and place) that make up the core of a business’s marketing strategy. In this step of the marketing planning process, marketing mix must be designed to satisfy the wants of target markets and achieve the marketing objectives. The most successful businesses have continually monitored and changed their marketing mix

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due to respective internal and external factors and have monitored the external business environment in order to maximize their marketing mix components.

Factors Influencing Consumer Choice:

When making decisions on products a business must look at factors that influence consumer choice such as psychological factors, Socio cultural factors, Economic factors, and Government Factors.

Psychological Factors: such as motivation, perception, lifestyle, personality and self concept, learning, and attitudes influence the consumer’s behavior towards a product and Coca Cola has addressed this issue by introducing Diet Coke to satisfy different lifestyles.Socio cultural factors: such as culture, subculture, socio-economic status, family and reference groups influence the consumer’s behavior towards a product.

Economic factors: such as Disposable income and discretionary income. Coca Cola has addressed this side of the influence by maintaining a low price on the price of its products.

Government Factors: such as new regulations, inflation, interest rates all influence consumer spending and choice.

Product:

Many Products are physical objects that you can own and take home. But the word product means much more than just physical goods. In marketing, product also refers to services, such as holidays or a movie, where you enjoy the benefits without owning the result of the service.

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Businesses must think about products on three different levels, which are the core product, the actual product, and the augmented product. The core product is what the consumer is actually buying and the benefits it gives. Coca Cola customers are buying a wide range of soft drinks. The actual product is the parts and features, which deliver the core product. Consumers will buy the coke product because of the high standards and high quality of the Coca Cola products. The augmented product is the extra consumer benefits and services provided to customers. Since soft drinks are a consumable good, the augmented level is very limited. But Coca Cola do offer a help line and complaint phone service for customers who are not satisfied with the product or wish to give feedback on the products.

Promotion:

In today’s competitive environment, having the right product at the right place in the right place at the right time may still not be enough to be successful. Effective communication with the target market is essential for the success of the product and business. Promotion is the p of the marketing mix designed to inform the marketplace about who you are, how good your product is, and where they can buy it. Promotion is also used to persuade the customers to try a new product, or buy more of an old product.

The promotional mix is the combination of personal selling, advertising, sales promotion, and public relations that it uses in its marketing plan. Above the line promotions refers to mainstream media: Advertising through common media such as television, radio, transport, and billboards and in newspapers and magazines. Because most of the target is most likely to be exposed to media such as television, radio, and magazines, Coca Cola has used this as the main form of promotion for extensive range of products. Although advertising is usually very expensive, it is the most effective way of reminding and exposing potential customers to Coca Cola Products. Coca Cola also utilizes below the line promotions such as contests, coupons, and free samples.

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Positioning:

Once a business has decided which segments of the market it will compete in, developed a clear picture of its target market and defined its product, the positioning strategy can be developed. Positioning is the process of creating, the image the product holds in the mind of consumers, relative to competing products. Coca Cola and Franklins both make soft drinks; although Franklins may try to compete they will still be seen as down market from Coca Cola. Positioning helps customers understand what is unique about the products when compared with the competition. Coca Cola plan to further create positions that will give their products the greatest advantage in their target markets. Coca Cola has been positioned based on the process of positioning by direct comparison and have positioned their products to benefit their target market. Most people create an image of a product by comparing it to another product, thus evident through the famous battles between Coca-Cola and Pepsi products.

Price:

Price is a very important part of the marketing mix as it can affect both the supply and demand for Coca Cola. The price of Coca Cola’s products is one of the most important factors in a customer’s decision to buy. Price will often be the difference that will push a customer to buy our product over another, as long as most things are fairly similar. For this reason pricing policies need to be designed with consumers and external influences in mind, in order to effectively achieve a stable balance between sales and covering the production costs.Price strategies are important to Coca Cola because the price determines the amount of sales and profit per unit sold. Businesses have to set a price that is attractive to their customers and provides the business with a good level of profit. Long before a sale was ever made Coca Cola had developed a forecast of consumer demand at different prices which inevitably determined whether or not

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the product came on the market, as well as the allocation of adequate money and resources to produce promote and distribute the product.

Pricing Strategies and Tactics

The pricing Strategy a business will use will have to focus on achieving the marketing plan’s objectives and support the positioning of the product, and take external factors such as economic conditions and competitors in to account. There are 5 strategies available to business: Market skimming pricing, Penetration pricing, Loss leaders, Price Points and Discounts. Over the years Coca Cola has used Penetration Pricing as a way of grabbing a foothold in the market and won a market share. It’s product penetrated the marketplace. Once customer loyalty is established as seen with Coca Cola it is then able to slowly raise the price of its product. There has been a fierce pricing rivalry between Coca Cola and Pepsi products as each company competes for customer recognition and satisfaction. Till now it appears as if Coke has come up on top, although in order to gain long term profits Coke had to sacrifice short term profits where in some cases it either went under of just broke even, but as seen it has been all for the best.

Pricing Methods

Good pricing decisions are based on an analysis of what target customers expect to pay, and what they perceive as good quality. If the price is too high, consumers will spend their money on other goods and services. If the price is too low, the firm can lose money and go out of business.Pricing methods include: Cost based Pricing, Market based pricing and Competition based Pricing. Over the years Coca has lost ground here in it’s pricing but has regained its strength as it employed the Competition-based pricing method which allowed it to compete more effectively in the soft drink market. Leader follower pricing occurs when there is one quite powerful business in the market which is thought to be the market leader. The business will tend to have a larger market share, loyal customers and some technological edge, thus the case currently

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with Coke; it was first the follower but through effective management has now become the leader of the market and is working towards achieving the marketing objectives of the Coca Cola. Survival in the market place, own 60 % of market share by 2007, increase further awareness of product and a return on 20% on capital employed for August 2007.

Packaging:

Packaging, which is not as highly perceived by businesses, is still an important factor to examine in the marketing mix. Packaging protects the product during transportation, while it sits in the shelf and during use by consumers; it promotes the product and distinguishes it from the competition. Packaging can allow the business to design promotional schemes, which can generate extra revenue and advertisements. Coca-Cola has benefited from packaging the product with incentives and endorsements on the labeling as a promotional strategy to increase its volume of sales and revenue.

Branding:

It is often hard to say exactly why we buy one company’s product over another. Companies such as Nike and Adidas spend large amounts of money trying to win consumers away from their competitors who make products that are very similar. The popularity of the brand is often the deciding factor. Over the time Coca Cola has spent millions of dollars developing and promoting their brand name, resulting in worldwide recognition. 'Coca-Cola' is the most recognized trademark, recognized by 94% of the world's population and is the most widely recognized word after "OK". Coca Cola’s red and white colors and special writing are all examples of world-wide trademarks.

There are a number of branding strategies: Generic brand strategy, Individual brand strategy, Family brand strategy, Manufacturer’s brand strategy, Private

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brand strategy, and Hybrid brand strategy. Coca Cola utilizes the Individual brand strategy as Coca Cola’s major products are given their own brand names e.g. Fanta, Sprite, Coca Cola etc although they may be presented as different lines they operate under the name of Coca Cola.

Place and Distribution:

The place P of the marketing mix refers to distribution of the product- the ways of getting the product to the market. The distribution of products starts with the producer and ends with the consumer.One key element of the “Place/Distribution” aspect is the respective distribution channels that Coca Cola has elected to transport and sells its product.

Selecting the most appropriate distribution channel is important, as the choice will determine sales levels and costs. The choice for a distribution channel for any business depends on numerous factors, these include:

• How far away the customers are; • The type of product being transported; • The lead times required; and; • The costs associated with transport;

There are four types of distribution strategies that Coca Cola could have chosen from, these are: intensive, selective, exclusive, and direct distribution. It is apparent from the popularity of the Coca Cola’s product on the market that the business in the past used the method of intensive distribution as the product is available at every possible outlet. From supermarkets to service stations to your local corner shop, anywhere you go you will find the Coca Cola products.

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ROOM TO GROW: Although the Coca-Cola system has an extensive

distribution network and their products are available in more than 200 countries, there are many places where people enjoy fewer than 50 servings of their products each year. More than 3.2 billion people, about half of the world’s population, live in these countries. These markets represent an enormous growth opportunity, and they are making strides toward capturing that opportunity.

DISTRIBUTION SYSTEM

Direct distribution: In direct distribution, the bottling unit or the bottler partner has direct control over the activities of sales, delivery, and merchandising and local account management at the store level.

Indirect distribution: In indirect distribution, an organization which is not part of the Coca-Cola system has control on one or more of the distribution elements (Sales, delivery, merchandising and local account management)

Merchandising: Merchandising means communication with the consumer at the point of purchase to convey product benefit, value, and quality. Sales people and delivery personnel both have this responsibility. In certain locations special teams who go into business locations to specifically merchandise our products.

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DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS

Distribution Department: It appoints distributors and establishes a distribution network, processes approved sale orders and prepares invoices, arranges logistics and ship products, co-ordinates with distributors for collections and monitors distribution stocks and their set-up.

Finance Department: It checks credit limits and approves sales orders in compliance with the credit policy followed by the firm, records collections from distributors, periodically reconciles outstanding balances from distributors, obtains balance confirmation from distributors and follows up outstanding balances.

Shipping or Warehousing Departments: It dispatches goods as per approved by order, ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out area and updates warehouse stock records in a timely manner.

Comparison of Coca-Cola and Pepsi

Coca-Cola and Pepsi are the two greatest competitors in the soft drink industry. A brief introduction and history of the two companies will provide a basis for

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understanding how the companies have come to be where they are today and how they run their companies. The company structure of each will also be briefly explained to provide an understanding of how management style is impacted. Marketing and Advertising The marketing skills that these companies possess are the reason both Coca-Cola and Pepsi are so successful. Our research will provide an in-depth look at the marketing tactics that these companies use and how they compare to each other. The use of new technologies, forecasting, advertising, and political environments will all be included when determining what affects the marketing strategies the companies choose to take.

Market Analysis

The market analysis investigates both the internal and external business environment. It is vital that Coca cola carefully monitor both the internal and external aspects regarding it’s business as both the internal and external environment and their respective influences will be decisive traits in relation to Coke’s success and survival in the soft drink industry.

Internal Business Environment

The internal business environment and its influence is that which is to some extent within the business’s control. The main attributes in the internal environment include efficiency in the production process, through management skills and effective communication channels. To effectively control and monitor the internal business environment, Coke must conduct continual appraisals of the business’s

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operations and readily act upon any factors, which cause inefficiencies in any phase of the production and consumer process.

External Business Environment

The External business environment and its influences are usually powerful forces that can affect a whole industry and, in fact, a whole economy. Changes in the external environment will create opportunities or threats in the market place Coca cola must be aware off. Fluctuations in the economy, changing customer attitudes and values, and demographic patterns heavily influence the success of Coka Cola’s products on the market and the reception they receive from the consumers.

SWOT ANALYSIS

A SWOT Analysis is used to evaluate a company's strengths, weaknesses, opportunities, and threats. This report examines The Coca-Cola Company's key business structure and operations, history and products, and it provide summary analysis of key revenue lines and strategy. Use this report to understand the internal and external factors that affect The Coca-Cola Company's performance in achieving its business goals. SWOT consists of examining the current activities of the organization, its Strength and Weakness and then using this and external research data to set out the Opportunities and Threats that exist.

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Strengths:

1. Beverage experience.2. Personal relations.3. Knowledge regarding competitor.4. Hardworking stuff and distributer.5. More market share in textile sector.6. People reliance on quality of product and brand.7. Coca-Cola has been a complex part of world culture for a very long time.8. The product’s image is loaded with over-romanticizing and this is an image

many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats and collectible memorabilia.

9. This extremely recognizable branding is one of Coca-Cola’s greatest strengths. “Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment.”

Additionally, Coca-Cola’s bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers.

Weakness:

Weaknesses for any business need to be both minimized and monitored in order to effectively achieve productivity and efficiency in their business’s activities, Coke is no exception.

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1. Although domestic businesses as well as many international markets are

thriving, Coca-Cola has recently reported some “declines in unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power.”

2. According to an article in Fortune magazine, “In Japan, unit case sales fell 3% in the second quarter of 1998, scary because while Japan generates around 5% of worldwide volume, it contributes three times as much to profits.

3. Latin America, Southeast Asia, and Japan account for about 35% of Coke’s volume and none of these markets are performing to expectation.

4. Coca-Cola on the other side has effects on the teeth which is an issue for health care. It also has got sugar by which continuous drinking of Coca-Cola may cause health problems. Being addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an effect on body after few years.

Local Weaknesses: a) Finance problem.b) Less empty on floor.c) Vehicles are less.d) Minor signage in the area.e) Large number of PCI empty stock.f) More seasonal demand.g) Poor service.h) High prices.

Opportunities:

1. Brand recognition is the significant factor affecting Coke’s competitive position.

2. Coca-Cola’s brand name is known well throughout 94% of the world today.

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3. The primary concern over the past few years has been to get this name brand

to be even better known. Packaging changes have also affected sales and industry positioning, but in general, the public has tended not to be affected by new products.

4. Coca-Cola’s bottling system also allows the company to take advantage of infinite growth opportunities around the world. This strategy gives Coke the opportunity to service a large geographic, diverse area.

Local Opportunities:

a) Customers are anode from competitor especially in rural area.b) New projects have been started.c) Minor signage work is done in area by PCI.d) PCI is getting interest in textile sector.e) New technologies that increase efficiencies.f) Niche markets that large companies do not wish to serve.

Threats:

Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial.

1. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong, but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate.

2. Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-consciousness of the market could have a serious affect.

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3. Of course, both Coke and Pepsi have already diversified into these markets,

allowing them to have further significant market shares and offset any losses incurred due to fluctuations in the market.

4. Consumer buying power also represents a key threat in the industry. The rivalry between Pepsi and Coke has produce a very slow moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or losing market share to the competition.Furthermore, consumers can easily switch to other beverages with little cost or consequence.

Local Threats:a) Competitor’s distributor is financially strong.b) A new PCI distribution is expected.c) Competitor is thinking seriously about textile sector market.d) Empty lifting from PCI.e) Economic conditions become unfavorable.

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

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PASSION: Committed in heart and mind

INTEGRITY: Be real

ACCOUNTABILITY: If it is to be, it’s up to me

COLLABORATION: Leverage collective genius

INNOVATION: Seek, imagine, create, delight

QUALITY: What we do, we do well

MISSION

To Refresh the World... In body, mind, and spirit

To Inspire Moments of Optimism... Through our brands and our actions

To Create Value and Make a Difference... Everywhere we engage.

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VISION FOR SUSTAINABLE GROWTH

PROFIT: Maximizing return to shareowners while being mindful of our

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.

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FINANCIAL DATA SHEET OF COCA-COLABalance sheet (Annual)

(All numbers in thousands)

PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Assets

Current Assets

Cash And Cash Equivalents 4,701,000   4,093,000   2,440,000  

Short Term Investments 278,000   215,000   150,000  

Net Receivables 3,090,000   3,317,000   2,704,000  

Inventory 2,187,000   2,220,000   1,641,000  

Other Current Assets 1,920,000   2,260,000   1,506,000  

Total Current Assets 12,176,000   12,105,000   8,441,000  

Long Term Investments 5,779,000   7,777,000   6,783,000  

Property Plant and Equipment 8,326,000   8,493,000   6,903,000  

Goodwill 4,029,000   4,256,000   1,403,000  

Intangible Assets 8,476,000   7,963,000   3,732,000  

Accumulated Amortization -   -   -  

Other Assets 1,733,000   2,675,000   2,533,000  

Deferred Long Term Asset Charges -   -   168,000  

Total Assets 40,519,000   43,269,000   29,963,000  

Liabilities

Current Liabilities

Accounts Payable 6,152,000   7,173,000   5,622,000  

Short/Current Long Term Debt 6,531,000   6,052,000   3,268,000  

Other Current Liabilities 305,000   -   -  

Total Current Liabilities 12,988,000   13,225,000   8,890,000  

Long Term Debt 2,781,000   3,277,000   1,314,000  

Other Liabilities 3,401,000   3,133,000   1,873,000  

Deferred Long Term Liability Charges 877,000   1,890,000   608,000  

Minority Interest -   -   358,000  

Negative Goodwill -   -   -  

Total Liabilities 20,047,000   21,525,000   13,043,000  

Stockholders' Equity

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Misc Stocks Options Warrants -   -   -  

Redeemable Preferred Stock -   -   -  

Preferred Stock -   -   -  

Common Stock 880,000   880,000   878,000  

Retained Earnings 38,513,000   36,235,000   33,468,000  

Treasury Stock (24,213,000) (23,375,000) (22,118,000)

Capital Surplus 7,966,000   7,378,000   5,983,000  

Other Stockholder Equity (2,674,000) 626,000   (1,291,000)

Total Stockholder Equity 20,472,000   21,744,000   16,920,000  

Net Tangible Assets $7,967,000   $9,525,000   $11,785,000  

Balance sheet (Quarterly)

(All numbers in thousands)

PERIOD ENDING 3-Jul-09 3-Apr-09 31-Dec-08 26-Sep-08

Assets

Current Assets

Cash And Cash Equivalents 7,647,000   6,816,000   4,701,000   7,797,000  

Short Term Investments 298,000   366,000   278,000   287,000  

Net Receivables 3,746,000   3,139,000   3,090,000   3,674,000  

Inventory 2,483,000   2,298,000   2,187,000   2,321,000  

Other Current Assets 2,198,000   2,095,000   1,920,000   2,741,000  

Total Current Assets 16,372,000   14,714,000   12,176,000   16,820,000  

Long Term Investments 6,292,000   5,757,000   5,779,000   7,421,000  

Property Plant and Equipment 8,904,000   8,425,000   8,326,000   8,527,000  

Goodwill 4,092,000   3,988,000   4,029,000   4,011,000  

Intangible Assets 8,535,000   8,426,000   8,476,000   8,776,000  

Accumulated Amortization -   -   -   -  

Other Assets 1,859,000   1,793,000   1,733,000   2,625,000  

Deferred Long Term Asset Charges -   -   -   -  

Total Assets 46,054,000   43,103,000   40,519,000   48,180,000  

Liabilities

Current Liabilities

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Accounts Payable 7,136,000   6,007,000   6,152,000   7,940,000  

Short/Current Long Term Debt 6,431,000   7,162,000   6,531,000   8,647,000  

Other Current Liabilities -   -   305,000   -  

Total Current Liabilities 13,567,000   13,169,000   12,988,000   16,587,000  

Long Term Debt 5,017,000   5,017,000   2,781,000   2,877,000  

Other Liabilities 3,051,000   2,944,000   3,401,000   2,803,000  

Deferred Long Term Liability Charges 902,000   865,000   877,000   2,168,000  

Minority Interest -   396,000   -   -  

Negative Goodwill -   -   -   -  

Total Liabilities 22,537,000   22,391,000   20,047,000   24,435,000  

Stockholders' Equity

Misc Stocks Options Warrants -   -   -   -  

Redeemable Preferred Stock -   -   -   -  

Preferred Stock -   -   -   -  

Common Stock 880,000   880,000   880,000   880,000  

Retained Earnings 39,999,000   38,911,000   38,513,000   38,397,000  

Treasury Stock (24,174,000) (24,207,000) (24,213,000) (24,218,000)

Capital Surplus 8,111,000   8,021,000   7,966,000   7,927,000  

Other Stockholder Equity (1,299,000) (2,893,000) (2,674,000) 759,000  

Total Stockholder Equity 23,517,000   20,712,000   20,472,000   23,745,000  

Net Tangible Assets $10,890,000   $8,298,000   $7,967,000   $10,958,000  

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CONCLUSION

After thorough study, we come to the conclusion that the marketing strategy of Coca Cola is working for them and the product is gaining popularity among youth day by day.

It could be seen that “economical variables” highly affects the Coke’s resolution. Economic factors are those actors who effect the production of any industry. So, Coke is not the out of question. If the economic conditions of the country is not that strong and Coke increases its Price in this situation. Then it would impact highly negative. And inflation is also not a good position for any country’s production point of view. It also impacts highly negative in the Coke’s production.

The Coca-Cola Company has always believed that education is a powerful force in improving the quality of life and creating opportunity for people and their families around the world.

Of course business innovation leaves highly good impacts in the business of Coke. As coke use more advance technology in its production process. It will result in increment of their production throughout the country.

As far as the “governmental hindrances” are concerned the impacts highly bad on coke’s production. Ever year when budget in announced government taxes rates always shoot up. This approach of government decreases the profit margin of Coke.

Coca-Cola has always had a close consumer and supplier relationship with its customers. Its entertaining and colorful advertisements have always and will always rock the media. Indian rock stars, sportmen, and actors have played a very vital role in making Coca-Cola such a popular beverage.

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