GROUP No - 10 CASE STUDY on COCA –COLA in INDIAN Market Presented by 1)Sameer )Girish )Mitul )Sudhakar -- 26

TWO categories AlcoholicNon Alcoholic Carbonated (CO2 used) Non Carbonated (No CO2 used) Soda, Coca-Cola, Tonic Water Fruits juices & drinks, Nectars, Coffee, Tea Wines, Spirits, Beers

 Invented in 1886 by Dr. John Pemberton (Pharmacist leaving in Atlanta, Georgia).  Leading manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups  Owns or licenses more than 500 brands  Operates in more than 200 countries  Headquartered in Atlanta, Georgia  Employing employees globally.  More than 400 brands including non carbonated. …..IT’S NONE OTHER THAN …. “THANDA MATLAB………. COCA- COLA”

 In 1977, Coca Cola had to leave the country under FERA which governed the operations of Foreign Companies in India.  It made comeback in 1993 by acquiring Thumps UP, Limca, Maaza, Citra, Gold Spot.  Coca Cola – Diversified its portfolio in INDIA  Initially entered as Cola segment ( Carbonated Segment) which further was diversified to Non Cola Segment (Non Carbonated segment).  Coca Cola’s journey in INDIA was challenging due to use of pesticide, unethical groundwater usage, pollution.  However they tried below strategies to overcome the challenges.  Advertising strategy – “ Thanda Matlab Coca-Cola”, etc.  Upgrading technology, Improving maintenance & training.  Undertook water management & conservation.  Upgraded distribution & marketing infrastructure.  Continuously involved in R & D.

 India is bigger market comparing to Australia in terms of consumption  Shift in consumer beverage demand and pattern.  Indian Consumer drink around 120 billion litres of beverage every year, only 4% which are ready to packaged beverage  Coca Cola Launched Minute Maid ( Lemon) | Tamil Nadu ( Bilkul ghar jaisa )  Margins are better than carbonated drinks, as juice is premium segment while carbonated drinks are mass segment In 2009, incremental volume of India was 25% while Australia was 3%. Discuss evolution & growth of Coca-Cola in India

 The non carbonate segment is growing in double the rate of carbonated.  Company also planning to get in dairy segments under the brand of maaza. Since it will require the re-constituting the existing product (the pulp left from mazaa can be re processed in shake)  Battle over Nimbu pani  Dabur came up with real & Pepsico came up with tropicanna, Nimbooz,  Parle Agro with Lemon Drink & Wipro with Glucovila  Coca cola 500 milion cases pegged by volume

In 2009, incremental volume of India was 25% while Australia was 3%. Discuss evolution & growth of Coca-Cola in India

World’s largest & best Global Brand World’s largest market share Extensive distribution channel Successful marketing & advertising campaign Advertising policy – Endorsement with famous personality like Aamir Khan Focus on Carbonated Drinks Negative publicity Health issues Dropping Sales Youth focus Introducing energy drinks Great demand for nectar (fruit juices) Nectar & lemon drink overladed with unbranded products but largely untapped by branded products Bottled water consumption growth Untapped rural market Disposable Income Carbonated drink market is saturated Competition from rivals Decreasing gross profit & net profit margin Water Scarcity Changes in consumer preference

 Negative publicity due to aerated drink found to contain pesticides like DDT, malathin which was almost 24 times of permissible European standards.  Allegation like use of unethical groundwater & pollution resulting in shutdown of plachimada site at Kerala. Similar issue faced at Mehdiganj near Varanasi  Saturation in terms of Carbonated drinks 1.Corporate Level strategy On return to India post 16 years acquired nations soft drink brand like Thumsup, Limca, Maaza, Gold Spot, citra. Got known as Hindustan Coca Cola Beverages Reduced employee staff and upgraded bottle technology ultimately reducing cost Came up with major advertising strategy which could be associated in minds of Indian consumers. “ Thanda Matlab Coca Cola” Continued to build up brand image and won “Golden Peackok” award at event on World Environment day 2. Forward Integration strategy In 2003 became largest manufacturer, marketor & distributor Setup of manufacturing plant at Nabhipur Punjab to tap growing northern market. (earlier plan was to import from Israel) 3. Market & product Development In 2009 Launched brand Burn priced at 75Rs In 2010 Minute maid Nimbu 4. Growth Strategy 5 P’s – People, Production, Planet, Profit, Partners

Can Coca Cola differentiate & sustain in the market by introducing fruit based drinks despite intense competition in carbonated & non carbonated drinks Increasing Health Concerns Hurting Demand Focus On Healthier Variants Of CSDs: Great demand for nectar (fruit juices) Upgrading technology Upgraded distribution & marketing infrastructure. Continuously involved in R & D. Change in customer preferences It is one of the best global brand with world’s largest market share having strong marketing & advertising campaign Extensive distribution channel

Can Coca Cola differentiate & sustain in the market by introducing fruit based drinks despite intense competition in carbonated & non carbonated drinks Great demand for nectar and lemon drinks. Recent trends in market showed consumer interest towards energy drink, real fruit juice, fruit drinks, etc. Despite of other competitors like Dabur and Pepsico, Coca cola has the largest share in fruit based drink i.e. Maaza It has set up another manufacturing facility for its fruit juic line at Nabhipur in Rajpura district in Punjab.

Sale for fruit based drinks grew from 3.43% from 2001 to 2006 Investment of $250 Million to strengthen its distribution and marketing infrastructure. Continuously involved in research and innovation of products Margins are better in juice based drinks than carbonated drinks as juice is premium segment Non Carbonated beverage segment is growing at double the rate of carbonated one in INR 7,000 crores domestic beverage industry Company has made planned to make its entry into the dairy segment with mango shake under the Maaza brand