Colas in India

8/9/2019 Colas in India

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Colas in india

Point 1= reason for stopping manufacturing colas in india

Criticism of Coca-Colahas arisen from various groups, concerning a variety of issues,including health effects, environmental issues, and business practices. The Coca-Cola

Company, its subsidiaries and products have been subject to sustained criticism by both

consumer groups and watchdogs, particularly since the early 2000s.

Allegations against the company are varied, including

possible health effects of Coca-Cola products,

a poor environmentalrecord,

perception of the companies engagement in monopolisticbusiness practices,

!uestionable labour practices "including allegations of involvement with

paramilitary organisations in suppression of trade unions#,

!uestionable mar$etingstrategies, and

accusation of violations of intellectual propertyrights.

%erception of the company as behaving unethically has led to the formation of pressure

groupssuch as &'iller Co$e&, product boycotts, and lawsuits

Acidity and tooth decay(edit)

*umerous court cases have been filed against the Coca-Cola Company since the

+0s alleging that the acidityof the drin$ is dangerous. n some of these cases,

evidence has been presented showing Coca-Colais no more harmful than

comparable soft drin$sor acidicfruit juices. /re!uent eposure of teethto acidic drin$s

increases the ris$ of tooth damage through dental erosion.This form of tooth decay is

unrelated to dental caries
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High fructose corn syrup

Co$e has been made with high fructose corn syrupinstead of sucroseto reduce costs.

1ne of the reasons this has come under criticism is because the cornused to produce

corn syrup often comes from genetically altered plants

India secret formula ban(edit)

Coca-Cola was ndias leading soft drin$ until + when it left ndia after a new

government ordered the company to turn over its secret formula for Coca-Cola and

dilute its sta$e in its ndian unit as re!uired by the /oreign 3change 4egulation Act

"/34A#.(n +5, the company "along with %epsiCo# returned after the introduction of

ndias6iberali7ationpolicy

\

Environmental issues

Cartoon by Carlos 6atuff, on concerns in ndia.

n ndia, there eists widespread concern over how Coca-Cola is produced. n particular,it is feared that the water used to produce Co$e may contain unhealthy levels

of pesticidesand other harmful chemicals. t has also been alleged that due to the

amount of water re!uired to produce Coca-Cola, a!uifersare drying up and forcing

farmers to relocate
http://en.wikipedia.org/wiki/High_fructose_corn_syruphttp://en.wikipedia.org/wiki/High_fructose_corn_syruphttp://en.wikipedia.org/wiki/Sucrosehttp://en.wikipedia.org/wiki/Maizehttp://en.wikipedia.org/w/index.php?title=Criticism_of_Coca-Cola&action=edit&section=5http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Carlos_Latuffhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pesticidehttp://en.wikipedia.org/wiki/Aquiferhttp://en.wikipedia.org/wiki/High_fructose_corn_syruphttp://en.wikipedia.org/wiki/Sucrosehttp://en.wikipedia.org/wiki/Maizehttp://en.wikipedia.org/w/index.php?title=Criticism_of_Coca-Cola&action=edit&section=5http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Carlos_Latuffhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pesticidehttp://en.wikipedia.org/wiki/Aquifer


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Pesticide useIn 2003, the Centre for Science and Environment (CSE),[15][1] a non!"overnmental

or"anisation in #e$ %elhi, said aerated $aters &rod'ced soft drin*s

man'fact'rers in India, incl'din" m'ltinational "iants +e&siCo and Coca!Cola,

contained toins incl'din" lindane, %%-, malathion and chlor&rifos . &esticides

that can contri'te to cancer and a rea*do$n of the imm'ne sstem/ -ested&rod'cts incl'ded Co*e, +e&si, and several other soft drin*s (&, irinda, anta,

-h'ms &, 4imca, S&rite), man &rod'ced -he Coca!Cola Com&an/

CSE fo'nd that the Indian &rod'ced +e&sis soft drin* &rod'cts had 3 times the

level of &esticide resid'es &ermitted 'nder E'ro&ean nion re"'lations6 Coca!Colas

30 times/ CSE said it had tested the same &rod'cts in the S and fo'nd no s'ch

resid'es/

Coco colas

1. MARKETING STRATEGIES OF COCOCOLA INDIA Presented by Shahnas

A Sabitha Z.B

2.Coca-cola accounts forOperations in more than 200 countries.W

ithin our more than 400 brands are nearly 2,400 beverage products.COCA -COLA

Coca-Cola Company is the world's largest nonalcoholic beverage company.

3.Under Robert W W . oodruff six decades ofW ithin four years, his

merchandising flair helped expand consumption of Coca-Cola to every state and

territory.T he coca-cola formula and brand was bought in 1889 by Asa Candler who

incorporated the coca cola company in 1892.HISTORY Coca cola was invented by

john stith pemberton in 1886 in Atlanta, Georgia. leadership, T Coca-ColaCompany he

4.We will serve consumers aBrand Coca Cola is the core of our business

Consumer demand drives everything we do.MISSION The Coca Cola

Company creates value by executing comprehensive business strategy guided by six

key beliefs: broad We will lead as a model corporate citizen.We will think and act
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locally.We will be the best marketers in the world.selection of the nonalcoholic

ready-todrink beverages they want to drink through out the day.

5.QUAL Y: What we do, we do well ITINNOVAT ION: Seek, imagine,

create, delight

COL AB L ORAT ION: Leverage collective genius

ACCOUNT ABIT If it is to be, it s up to me IL Y:INT GRIT E Y: Be realPASSION: Committed in

heart and mindL ADE E RSH : The courage to shape a better future IPVALUES

Coca-Cola is guided by shared values that both the employees as individuals and the

Company will live by; the values being:

6.PROF : Maximizing return to shareowners while IT being mindful of overall

responsibilities. P OPL : Being a great place to work where people E E are inspired to

be the best they can be. P ORT OL Bringing to the world a portfolio of F IO: beverage

brands that anticipate and satisfy peoples Desires and needs. PVISION

ART RS: Nurturing a winning network of NE partners and building mutual loyalty. P

ANE : Being a responsible global citizen that L T makes a difference.

7.Cola was the largest selling flavor with market share ofIndian market

was dominated by domestic brands, with L imca being the largest selling brand.

Coco cola in India Coca-Cola was the 1st international soft drinks brand to enter

India in early 1970s.

8.F RA needed Coca-Cola to reveal its E secret concentrate formula as well

as reduce its equity stake which was notB ut due to norms set by the F oreign E

xchange Regulation Act (F RA), CocaE Cola left India and did not return till 1993 after

a 16 year absence from the Indian beverage market.Withdrawal from India Up till

1977, Coca-cola was the leading soft drink brand in India.

9.P ure Drinks strongly objected to T humsUp being called a soft drink as

it felt its taste is too strong.In 1980, P arle, another major Indian player launched T

humsUp, the drink which till date is most popular soft-drink in India.P ure drinks,

Delhi launched Campa-Cola, to take advantage of Cokes exit and by the end of 70s,

was the only Cola drink in the Indian market.

10.W ith a fine and detailed distribution network in place, Coke was now

ready to take on archrivalAs an entry strategy, CCI took over P arle F oods.On

September 22, 1993, the company bought out the P arle brands.Re-entry into the

Indian Markets Coca-Cola got the permission to enter the country with a 100 per cent

unit in India.
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11.In 1993, T humps Up, Gold Spotand, L imca enjoyed around 75% share of

the CSD market. W the entry of Coke, CCI decided not to ith promote the cola brand

they took over i.e., they decided to withdraw T humps Up from the market. T however,

did not pay off since the his cola market was (and still is) highly polarized and people

were unwilling to compromise on the taste of their preferred cola. As a result, Cokesmarket share (Coke + T humps Up) fell to nearly 55%. After 3 years of incurring

losses, CCI finally took a decision to re-launch T humps Up. T strategypaid off

his

12.Coca-Cola is a leading player in the Indian beverage market with a 60 per

cent share in the carbonated soft drinks segment, 36 per cent share in fruit drinks

segment and 33 per cent share in the packaged water segment. In 2004, Coca-Cola

sold 7 billion packs of its brands to more than 230 million consumers across 4,700

towns and 175,000 villages. T company has doubled its volumes and he trebled itsprofits between 2001 and 2004.MARKET SHARE

13.Marketing Strategies of Cocacola India

14.As an entry strategy, CCI took over Parle Foods Acquisition of local

popular Indian brands including Thums Up (the mosttrusted brand in India21), Limca,

Maaza, Citra and Gold Spot This combination of local and global brands enabled

Coca-Cola to exploit the benefits of global branding and global trends in tastes while

also tapping into traditional domestic markets. Leading Indian brands joined the

Company's international family of brands, including CocaCola, diet Coke, Sprite and

FantaEntry strategies

15.Thums upMaazaLimcaDiet cokeFantaSpriteCoca-cola

Product line soft-drink:

16.Diet coke: weight consciousness Maaza: kids , juice loving people Sprite:

young people Thums-up: confident, mature and uniquely masculine attitude people

Fanta: girls, ladiesTarget market

17.Thums Up is a leading carbonated soft drink and most trusted brand in

India. Originally introduced in 1977, Thums Up was acquired by the Coca-Cola

Company in 1993. Thums Up is known for its strong, fizzy taste and its confident,

mature and uniquely masculine attitude. This brand clearly seeks to separate the

men from the boys. Mostly like by the youngsters specially boys. The competitor of

the brand on same category is Pepsi.THUMSUP
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18.The competitor on the cola category is Pepsi.Coca-Cola has a truly

remarkable heritage. From a humble beginning in 1886, it is now the flagship brand of

the largest manufacturer, marketer and distributor of non-alcoholic beverages in the

world.COCACOLA Coca cola is the world's favorite drink. It is the world's most

valuable brand and the most recognizable word across the world.

19.This brand is the one of the fastest growing brand in the country. Sprite is

liked by all age groupsSPRITE & people. Jan 09 report of The times of India

claims sprite to be the second brand in sales after Thumsup Competitor : 7up &

Mountain dew

20.Limca is cloudy lemon in flavor. This is very unique in this category. It has

white in color. Competitor : Nimbooz , Lime merindaLIMCA

21.FANTA Fanta has two flavors apple &Competitor: Mirinda, Parles Appy

fizzThe 'orange' drink of the Coca-Cola Company, is seen as one of the favorite

drinks since 1940's. Fanta entered the Indian market in the year 1993. Over the years

Fanta has occupied a strong market place and is identified as "The Fun Catalyst".

orange. This is very popular drink among females.

22.This is mango flavor. Maaza was launched in 1976. It is a drink which

offered the same real taste of fruit juices and was available throughout the year. In

1993, Maaza was acquired by Coca-Cola India and it currently dominates the fruit

drink market. Competitor: Slice, frootiMAAZA

23.This is orange juice. This contains no sugarMINUTE MAID pulpy

orange & added flavor. This is a family drink. Competitor : Tropicana

24.This comes in two variety-mineral waterKINLEY & soda. Mineral

water is used by all but soda is commonly used for alcoholic purpose by adult people.

Competitor : Aquafina, Bisleri

25.The company focuses on understanding the Indian consumer, and in

using these local insights to build powerful connect for its brands. popularity of cricket

and movie stars Activating local Indian festivals and occasions Creating a distinct

identity for each of its flagship brands 'Coca-Cola' is the most recognised trademark,

recognised by 94% of the world's population and is the most widely recognised word

after "OK"Intensive Brand Building
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7/10

26.MINUTE MAID MinuteTHUMS UP Thums up of coca cola is targeted to

the adventurous and energetic people that are interested in adventure and love taking

risk to succeed.Product Positioning FANTA The drink is specially launched for the

lady sector of the population and these drinks are positioned in that way only.Maid

of Coca cola are specially targeted to healthconscious customers and want healthdrink having natural energy in it.

27.AGE GENDER RURAL VS. URBAN MARKETMarket Segmentation

28.INDIA A: LIFE HO TO AISI This designation Coca-Cola gave to the

market segment including metropolitan areas and large towns represented 4% of the

countrys population. INDIA B: THANDA MATLAB COCA COLA INDIA B included

small towns and rural areas, comprising the other 96% of the nations populations.

BRAND LOCALISATION STRATEGY: THE TWO INDIAS

29.Coca cola is worldwide famous for their Distribution channel. IN India the

distribution network of Coca cola had 6.5lakh outlets across the country in 2000 .For

the urban distribution channel these companies adopted the model like direct store

distribution, broker warehouse distribution and VendingDistribution Strategy & Food

Service (V&FS) systemswhere as these companies are following the Hub and Spoke

model for rural distribution channel, in which they divided the different categories of

distributors according to the area they are

30.RURAL DISTRIBUTION CHANNEL HUB AND SPOKE MODEL

DISTRIBUTION CHANNEL IN URBAN AREAS Direct Store Distribution Broker

Warehouse Distribution (BWD) Vending& Food service (V&FS) systems.

31.Company has priced the product same as that of its major competitor of

thePRICE T effectively achieve the o stable balance between sales and covering

the production cost

32.PULL STRATEGY:- Coca-cola is also using Pull strategy in which they

are using advertising and promotion to persuade consumers to ask intermediaries forthe company brand product by this way coca cola inducing customer to order it from

For example-as coca cola is giving free pet bottles and other trade schemes to

distributors, agency owners and retailers.PROMOTION PUSH STRATEGY Coca

cola is using Push strategy in which they use its sales force and trade promotion

money to induce intermediaries to carry, promote and sell the product to end users

i.e. consumers.


8/10

33.Coca-Cola Cricket Coca-Cola Food Mela Coca-Cola GO-RED Coca-

ColaSALES PROMOTION ACTIVITIES & Mc Donalds Coca-Cola &

key account of MC Donalds launched the we go together joint promotion to

reinstate amongst consumers a real sense of the affinity that, both shares globally.

The promotion kicked off with point of sales material (Danglers, Bunting etc)displayed at all MC Donalds restaurants along with a special offer for coke & fries.

34.AVAILABILTY Availability is done according the type of outlet. ACTIVATION

Activation is important because it helps to boost the sales of the company. it is done

through the Glow sign, Shelf display, flanges. Combo boards, Table tops .This boards

usually gives to the E&D outlets

35.WARM DISPLAY RACK SHELF DISPLAY SHELF DISPLAY DISPLAY OF

RACK VISI COOLER

36.BRAND AMBASSDORS& TV COMMERCIALS

37.PLACE Distribution channel: Supplychain of coca-cola C & F agent

Distributor Retailer custom er

38.Diverse product portfolio Brand building Affordable entry price point

Strong brand pull Ultra low cost model Minimized internal capital requirements

FACTORS FOR SUCCESS

39.The rural population in India accounts for around 627 million, which is

exactly 74.3 percent of the total population. 1/3rd of countrys GNP 450 districts,

6,30,000 villages approx.Rural Market Scenario

40.Physical Distribution Channel Management Promotion and Marketing

CommunicationKey to success in Rural India

41.CCI began focusing on the rural market in the early 2000s in order to

increase volumes.

42.Flat sales in urban markets. Huge size of untapped rural market.

Improvement in income and spending power of rural people. Better physical

distribution channel. Aspirations for urban lifestyle. Increased awareness due to

television reach.The Decision was not surprising
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9/10

43.Poor rural Infrastructure. Erratic power supply. Different consumption

habits. Preference for traditional cold beverages (lassi,lemonade). Price of the

branded beverages.Challenges for Coke

44.Unique and different distribution strategy hub

Capacity expansion 25prod. lines and doubled bottle capacity.CCIs Rural Mktg. Strategy Three As

Availability: &Launched TVCs targeted at rural consumers.Mass media

marketing.Priced at Rs. 5, closed the gap between Coke and basic refreshments.

AcceptabilityIntroduction of 200ml bottle (chota coke).2,00,000 refrigerators to

rural retailers. AffordabilityCoverage of 1,58,342 villages by Aug. 2003 (81,383 in

2001).spoke distribution.

45.Participation in weekly mandies, haats,Outdoor advertising and

hoardings, etc.Coke realized that the communication media used in urban markets

would not work in villages because of low penetration of conventional media. Way

out... &Increased ad-spend on Doordarshan .fairs.

46.The low level of education that creates problem in brand identification.

Since they can not read the brand names and price tags it makes it easier for the

clones to launch brands similar in label and design and spoil the brand image.

Unscrupulous retailers are taking the benefit and damaging the perception of the

brands before they actually enter in to the rural market. It helps in acceptability of the

product. It helps in market penetration. To strengthen the brand ima

Importance of Advertising in Rural Marketing ge of the product.

47.Pesticides Issue and building confidence . Infrastructure in distribution

network. Competing with local brands Advertisement spending Diversification

Issues to focus.

48.Huge market High growth in terms of sales Change in the life style

Increase in the per capita income It can substitute other productsRural

market is more comfortable..

49.Swot analysis Strengt W eakness hs Oppurtuni ties Threats Worlds largest

brand Negative publicity Acquisition intense competition Intense competition Large

scale of operations Sluggish performance in north america Growing Dependence

bottled water on bottling market partners Robust revenue growth Decline in cash from

operation activities Has sufficient capital to expand Sluggish growth of carbonated

beverages


10/10

50.STRENGTHS: Coke Company has a good market reputation and a

strong distribution network. Coke is having a multi brand strategy ad is looking for a

great volume opportunity in India. Coke is presently no. 1 player in Indian Carbonated

soft drinks market. Coke was born 11 year before Pepsi (in 1987) ad a century later

still maintains that pioneering least. Pepsi and coke both have good brand image. WEAKNESS: Coke has less no. of retailers Less force - it has less no. Have owned

bottling plant. It has not planned for setting up of any new plants where their

competitor has planned to set up several new plants.

SWOT Analysis

51.OPPORTUNITY: A rapidly growing market, which is expanding @ 205

every year. It can take the market very well with the new investment of Rs. 2400

corers. It can give a big jerk to its major competitor Pepsi it can increase its number of

fountain to a sizeable amount. Increasing trend of cold drink of different brands.THREATS: It has a continuous threat from Pepsi as well as various other local soft

drinks. Coke has a major market than Pepsi between the teenager as well as the

student due to advertisement of world cup cricket. A large amount of expenses on the

advertisement. There is no proper policy of distributing the merchandising assets of

the company to the retailers. The company should search the new target market to

expand the market share in this competitive era. To meet the demand of the

customers the company should set up the new plants as its competitors are planning

to set up.
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Colas in India

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