PROJECT REPORT

On

MARKETING STRATEGIES

OF COCA COLA

Submitted By –

Name: -BHAIRI SRIKANTH JANARDHAN

ROLL NO 11

RAGIV GANDHI COLLEGE OF MANAGEMENT STUDIES GHANSOLI

1

INTRODUCTION

Coca-Cola Co., the global soft drink industry leader controlled Indian soft drink

industry till 1977. Then Janta Party beats the Congress Party and the Central Government

was changed. This change brought problems for Coca-Cola principle bottler, who was a big

supporter of Gandhi Family. Now Janta Party government demanded that Coca-Cola should

transfer its syrup formula to an India subsidiary. Because of this Coca-Cola backed and

withdrew from the country. In the mean time, India’s two target soft drink producers have

gotten rich. Who were controlling 80% of the Indian soft drink industry.

In 1993, the coco-Cola company came back to India. But the scenario of Indian soft

drink industry had been changed from 1977 to 1993. The competition in the soft drink

industry had become very tough. The major competitor at that time was Pepsi and Parle.

Parle’s best known brands include ThumsUp, Limca, Citra and others were Gold Spot and

Maaza. At that time Parle had a market share of 53% and Pepsi had a market share of 20%.

Now Coca-Cola had to make some strategies to survive in this tough competition.

For this Coca-Cola decided to take over Parle, so that the company can take the advantage

of Parle’s network. This decision was proved very beneficial for Coke as it had ready

access to over 2,00,000 retailer outlets and 60 bottlers of Parle’s network.

The marketing strategies which were made by Coca-Cola Company to win the Cola

war in 1990s had been very successful as Coca-Cola Company had a total market share of

48.3% in 1998.

So, the Indian soft drink industry saw a dramatic change in the decade of 1990s. All

the companies were trying to win the battle by making good marketing strategies. These

days Coke and Pepsi are using the 4Ps of marketing mix (Price, Product, Place and

Promotion) in such a way so that a good quality can be provided to the consumers at a

reasonable price to attract the consumers towards their brands.

2

COMPANY PROFILE

Coca-Cola Enterprises, established in 1886, is a young company by the standards of

the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of

Coca-Cola that is the foundation for this Company. The Coca-Cola Company traces it’s

beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce

Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899

when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead,

secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from

The Coca-Cola Company.

The Coca-Cola bottling system continued to operate as independent, local

businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The

Coca-Cola Company merged some of its company-owned operations with two large

ownership groups that were for sale, the John T. Lupton franchises and BCI Holding

Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. On an annual basis,

total unit case sales were 880,000 in 1986.

In December 1991, a merger between Coca-Cola Enterprises and the Johnston

Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again

helping accelerate bottler consolidation. As part of the merger, the senior management team

of Johnston assumed responsibility for managing the Company, and began a dramatic,

successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total

revenues were $5 billion

3

MISSION, VISION AND VALUES

The world is changing all around us. To continue to thrive as a business over the next ten

years and beyond, we must look ahead, understand the trends and forces that will shape our

business in the future and move swiftly to prepare for what's to come. We must get ready

for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term

destination for our business and provides us with a "Road map" for winning together with

our bottling partners.

Our Mission

Our Road map starts with our mission, which is enduring. It declares our purpose as a

Company and serves as the standard against which we weigh our actions and decisions.

To refresh the world...

To inspire moments of optimism and happiness...

To create value and make a difference

Our Vision

Our vision serves as the framework for our Road map and guides every aspect of our

business by describing what we need to accomplish in order to continue achieving

sustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they can

be

Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate

and satisfy people’s desires and needs

Partners: Nurture a winning network of customers and suppliers, together we create

mutual, enduring value

Planet: Be a responsible citizen that makes a difference by helping build and support

sustainable communities

Profit: Maximize long-term return to share owners while being mindful of our

overall responsibilities.

4

COKE IN INDIA

Coke gained an early advantage over Pepsi since it took over Parle in 1994. Thus it

had ready access to over 2,00,000 retailer outlets and 60 bottlers.

Thus Coke had greater than Pepsi because it had ready access to the Parle network.

For example in 1994 Pepsi had 20 bottlers to serve the entire country while Coke had

Parle’s 60 bottlers. In an important market like Delhi Pepsi had just one bottler while Coke

had four. On the other hand Pepsi had taken over the Dukes Mangola of Mumbai.

In 1993, Pepsi Foods Ltd. had control over the Rs. 1,100 - Crore Indian Soft Drinks

market. At that time, the soft drinks trycoon Ramesh Chauhan, was heading the Parle

group and at that time was deciding to explore the possibility of selling his best rolling

brands to Coke, rather than to Pepsi. Pepsi had entered the market 3 years before Coke did.

Before the Coke-Parle tie-up in '93- Ramesh Chauhan had 2 options before him- (1) to stick

around, fight it out again and hopefully, continue with his number one position. (2) To sell

out to Coca-Cola for a good return. This risk of losing out to one of the multinationals,

eventually, seemed to be throwing up the second alternative. Ramesh Chauhan told

business world (India's most popular business magazine) that "it is better to seek a

compromise than to fight a lone battle". But he was wisely simultaneously taking steps to

safeguard his market share. In a few months, Parle's products will be launched in 250 ml

instead the current 200 ml. The indications are that the company will hold the price line.

Incidentally, both Pepsi and Coke (if it finally gets in) will cost more than local brands

because of the 300% duly on the imported ingredients. However, this scenario was taking

place pre-liberalization period and hence implied a very high duty on imported items.

Entry of Pepsi and Coke in India or their proposals were at that time being opposed

because of the impact of first - strike on the minds of consumers. If Coca-Cola is allowed

an easy and quick entry through a window established by the government, there can be no

justification for denying similar access to Pepsi Co.

Also, there was the most convincing factor for the tie-up, that Parle's Position in the

Indian soft drinks market and Coca-Cola's marketing strengths and experience would make

an unbeatable combination. At that time according to the world’s most popular and well

known magazine, Fortune, had rated Coke as the world's best brand. Even Coke would

greatly benefit from the tie-up, as Coke with Parle’s wide spread bottling and distribution

network, which was spread over more than a thousand towns and cities and the gradual

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withdraw of Parle brand would ensure Coke would be the king. Parle's best known brands

include Thums Up, Limca, Citra and others were GOLD SPOT and Maaza.

Under the agreement, the existing bottlers of Parle Exports would continue to

produce Parle brands under the licence from the Coca-Cola Company. The U.S.

Multinational proposed to introduce its international brands -Coke, Fanta and Sprite at an

appropriate time. The Parle bottlers will be bottling these Coco - Cola brands also. The

exact nature of Parle, Coca-Cola tie-up is given below:

So, logically all brands of Parle as well as Coca-Cola will be marketed together. The only

problem being that Parle bottlers would not be able to meet the peculiar quality

requirements of Coke.

Coke + Parle60%

Pepsi26%

Pure Drinks10% Others

4%

MARKET SHARES IN % FIGURES (2012-13)

Model of Brand Selection

Customer buys on value

Value equals quality relative to price

Quality includes all non-price attributes that count in the purchase decision

Product

Customer service

Quality, price and value, are not absolute, but relative to competitors.

Quality Product

Value Customer Service

Price

6

MARKETING MIX

WHAT IS A MARKETING MIX?

It is a set of controllable tactical marketing tools - product, price, place & promotion

- that the firm blends to produce the response it wants in the target market.

THE FOUR PS OF THE MKT’S MIX

Effective marketing would be blending the marketing mix elements into a

coordinated programme designed to achieve the company’s marketing objective by

delivering value to consumers.

Cola - Cola has always worked upon their marketing mix tools since its entry into

India and Coke’s objective has been to strengthen their brand in important segments of the

market and to gain a competitive edge over Pepsi brands.

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PRODUCTProduct VarietyQualityDesignsFeaturesBrand namePackagingSizesServicesWarrantiesReturns

PRICEList PriceMRPDiscountsAllowancesPay PeriodCR Terms

PROMOTIONAdvertisingPersonal SellingSales PromotionPublic Relation

PLACEChannelsCoverageAssortmentsLocationsTransportationLogistics

TARGETCUSTOMERSINTENDED

POSITIONING

MARKETING MIX OF COCA-COLA

Firstly, we will look at how Coca-Cola has used their marketing mix. The marketing mix is

divided up into 4 parts; product, price, promotions and place.

1. Product:

The product (Coca-Cola soft drink) includes not just the liquid inside but also the

packaging. On the product-service continuum we see that a soft drink provides little

service, apart from the convenience. Soft drinks satisfy the need of thirst. However,

people are always different, some want more and others want less. Therefore Coca-Cola

has made allowances for that by providing many sizes. We also have particular tastes, and

again they have provided several options.

The product is convenient, that is - bought frequently, immediately, and with a

minimum of comparison and buying effort. The appearance of the product is eye catching

with the bright red colour. It has a uniquely designed bottle shape that fits in your hand

better, and creates a nicer & more futuristic look.

The quality of the soft drink is needed to be regularly high. Sealed caps ensure that

none of the "fizz" is lost. The bottles are light, with flexible packaging, so they won't crack

or leak, and are not too heavy to casually walk around with. The cans are also light and

safe.

The product range of Coca-Cola includes:

Coca-Cola,

Coca-Cola classic,

caffeine free Coca-Cola,

diet Coke

caffeine free diet Coke,

diet Coke with lemon

Vanilla Coke,

diet Vanilla Coke,

Cherry Coke,

diet Cherry Coke,

Fanta brand soft drinks,

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Sprite,

diet Sprite

Sprite Remix

Product Lifecycle of Coke:Product life cycle has four phases

1. Introduction

2. Growth

3. Maturity

4. Decline.

Coca-Cola is currently going through the maturity stage in Western countries. This

maturity stage lasts longer than all other stages. Management has to pay special attention to

products during this stage of the product life-cycle. During the maturity stage, products

usually go through a slowdown in sales growth. According to Coca-Cola's 2001 annual

report, sales have increased by 1.02% compared to last year. This percentage has no

comparison to the high level of growth Coca-Cola enjoyed during its growth stage. To add

a little variation Coca-Cola took the Coca-Cola Classic and added variations to it, including

Cherry Coke, Vanilla Coke and Diet Coke. Also Coca-Cola went from 6-oz. glass bottles to

8-oz. cans to plastic liter bottles, all helping increase consumption.

9

COCA-COLA

2. Price:

Like any company who has successfully endured a century of existence, Coca- Cola has

had to remain tremendously fluent with their pricing strategy. They have had the privilege

of a worthy competitor constantly driving them to be smarter, faster, and better. A quote

from Pepsi Co's CEO "The more successful they are, the sharper we have to be. If the

Coca-Cola Company didn't exist, we'd pray for someone to invent them." states it simply.

The relationship between Coca-Cola & Pepsi is a healthy one that each corporation has

learned to appreciate.

Coca-Cola products would appear, on the shelf, to have the most expensive range of

soft drinks common to supermarkets, at almost double the cost of no name brands. This

can be for several reasons apart from just to cover the extra costs of promotions, for which

no name brands do without. It creates consumer perceptions and values. When people buy

Coca-Cola they are not just buying the beverage but also the image that goes with it,

therefore to have the price higher reiterates the fact that the product is of a better quality

than the rest and that the consumer is not cheap. This is known as value-based pricing and

is used by many other industries in attracting consumers.

In India, the average income of a rural worker is Rs.500 a month. Coca Cola launched a

200 ml bottle for just Rs.5, an affordable amount on the pockets of the rural audience.

3. Place:

Coca-Cola entered foreign markets in various ways. The most common modes of entry

are direct exporting, licensing and franchising.

Besides beverages and their special syrups, Coca-Cola also directly exports its merchandise

to overseas distributors and companies. Other than exporting, the company markets

internationally by licensing bottlers around the world and supplying them with the syrup

needed to produce the product.

There are different types of franchising. The type that is used by Coca-Cola

Company is manufacturer-sponsored wholesaler franchise system. It is very comparable to

licensing but the only difference is that the finished products are sold to the retailers in local

market.

Coca Cola has managed their company’s marketing and sales strategy within

channels. Have you ever considered the significance of the Coke vending machine to the

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success and profitability of the Coca Cola Company? This channel is direct to consumer

and vending machines often have little to no competition and no trade or price promotions.

Key Channel Listing

Supermarkets

Convenience Stores

Fast Food

Petroleum Retailers

Chain Drug Stores

Hotels/Motels/Resorts

Mass Merchandisers

U.S. DOD Military Resale retail commands: AAFES, NAVRESSO and DECA

Vending

4. Promotion strategies

EYE CATCHING POSITION

Salesman of the Coca Cola Company positions their freezers and their products in eye-

catching positions. Normally they keep their freezers near the entrance of the stores.

SALE PROMOTION

Company also do sponsorships with different college and school’s cafes and sponsors their

sports events and other extra curriculum activities for getting market share.

UTC SCHEME

UTC mean under the crown scheme, Coca Cola often do this type of scheme and they offer

very handy prizes in it. Like once they offer bicycles, caps, TV sets, cash prizes etc. This

scheme is very much popular among children.

DISTRIBUTION CHANNELS

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Coca Cola Company makes two types of selling

1. Direct selling

2. Indirect selling

Direct Selling: -In direct selling they supply their products in shops by using their own

transports. They have almost 450 vehicles to supply their bottles. In this type of selling

company have more profit margin.

Indirect Selling: - They have their whole sellers and agencies to cover all area. Because it

is very difficult for them to cover all area of Pakistan by their own so they have so many

whole sellers and agencies to assure their customers for availability of Coca Cola products.

ADVERTISEMENT

Coca Cola Company use different mediums

Print media

Pos material

TV commercial

Billboards and holdings

PRINT MEDIA

They often use print media for advertisement. They have a separate department for print

media.

POS Material

Pos material mean point of sale material this includes: posters and stickers display in the

stores and in different areas.

TV COMMERCIALS

As everybody know that TV is a most common entertaining medium so TV commercials is

one of the most attractive way of doing advertisement. So Coca Cola Company does regular

TV commercials on different channels.

BILLBOARDS AND HOLDINGS

Coca Cola is very much conscious about their billboards and holdings. They have so many

sites in different locations for their billboards.

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PORTER'S FIVE FORCES MODEL OF COCA COLA

BARGAINING   POWER OF   SUPPLIERS

Most of the ingredients needed for beverages and snacks are basic commodities such as

potatoes, flavor, color, caffeine sugar, packaging etc. So the producers of these

commodities have no bargaining power over the pricing for this reason; the suppliers in this

industry are weak.

Bargaining Power of Buyers: -Buyers in this industry have the bargaining power, because

main source of the revenue and market share in beverage and food industry are fast food

fountain, convenience stores food stores vending etc. The profit margins in each of these

segments noticeably demonstrate the buyer power and how special buyers pay diverse

prices based on their power to bargain.

Threat of New Entrant: -There are many factors that make it hard for new player to

enter the beverage industry some of important factors are brand image and loyalty,

advertising expense, bottling network, retail distribution fear of retaliation and

global supply chain.

Brand Image / Loyalty: -Pepsi and Coke continuously focusing on increasing their

biggest beverage and food products, they have built some of the globe’s strongest brands

that are loved by consumers throughout the world. Innovative Marketing has leveraged

their worldwide brand-building strength to attach with consumers in significant ways and

impel the growth globally. These all campaign results in higher amount of loyal customer’s

and strong brand equity throughout the world. In 2011, Coca-Cola was declared the world’s

13

most valuable brand according to Interbrand’s best global brand. This makes it

impossible for new entrance to enter the beverage industry easily.     

Advertising Spend: -Cock and Pepsi has very effective advertising campaign, their

advertising also represents the cultures of different countries. They also sponsor different

games and teams and also featured in countless television programs and films. The

marketing and advertising expense was approximately $ 15 billion. This makes landscape

very harder for new players to succeed.        

Bottling Network: -Pepsi and Coca Cola have live and exclusive contracts with bottler’s

that have privileges in all over the world. These franchise agreements or contracts forbid

bottler’s from keeping competitor’s brands. Coke has the world's largest beverage

distribution network; consuming in more than 200 countries enjoys the Coke’s beverages at

an average of nearly 1.6 billion servings a day. Coca-Cola is sold in restaurants, vending

machine and stores in more than 200 countries. PepsiCo has adopted the globe’s most

powerful “go-to-market systems”, serving more than 10 million outlets a week by operating

greater than 100,000 different routes, and producing more than $300 million in retail sales

per day. They have also purchased some of the bottlers, this makes difficult for new players

to get bottler contracts or to build their bottling plants.    

Retail Distribution: - Coke and Pepsi offers 16 to 21 percent margins to retailers for the

space they present. These margins are substantial for retailers and this makes it very hard

for the new player to persuade retailer’s to carry their products.

Fear of Retaliation: - It is very difficult for new player to enter in this industry because;

they will be highly retaliating by local players in local markets and in global scenario they

have to face the duopoly of Coke and Pepsi. This ultimately could result in price war which

affects the new player.

           

Global Supply Chain: - Cock Bill & Melinda Gates Foundation and nonprofit Techno

Serve initiated a partnership to facilitate more than 50,000 small fruit farmers in Kenya

Uganda to increase their productivity and double their incomes by 2014. Coke has

significant opportunities within global supply chain to encourage and develop more

sustainable practices to benefit consumers, customers and suppliers. While; it is still in the

premature stages of exploring these opportunities and dedicated to the economic vitality

and health of the farming communities our supply chain engages.

14

PEST ANALYSIS OF COCA COLA COMPANYAs the leading beverages company in the world, Coca Cola almost monopolizes the entire

carbonated beverages segment. Beside it, Coca Cola also maintain their reputation as the

leading company in the world using PEST Analysis so that Coca Cola can examine the

macro-environment of Coca Cola’s operations.

Political

When Coca Cola had decided to enter a country to distribute the products; Coca Cola was

monitoring the policies and regulations of each country. For the example, when entering

Moslems country such as Indonesia or Malaysia, Coca Cola followed the regulation by

adding “Halal” stamp in each Coca Cola’s products. In this case, Coca Cola has no political

issues in this matter.

Economic

Coca Cola also has low growth in the market for carbonated beverages (North America).

The market growth was 1% in 2004. For stimulating the growth, Coca Cola had spent high

budget of advertisement to endorse the customers.

Social

Nowadays, customers tend to change their lifestyle. Customers more aware about health

consciousness by reducing in drinking carbonated beverages to prevent diabetes or other

diseases. As a result, Coca Cola’s demand for carbonated beverages has decreased and the

revenues also decreased. Thus, Coca Cola diversify the products by adding production lines

in tea (Nestea), juices (Minute Maid), mineral water (Dasani and Ades), and sport drinks

(Powerade), and others.

Technological

Because of the developing technology, Coca Cola has advanced technology in producing

the products. Then, Coca Cola made innovations by giving flavors to the Coke, such as

Cherry Coke, Diet Coke, Coca Cola Zero, Coke with Lime, and others. But, the customers

still prefer the original taste of traditional Coke; it can be seen by the high demands in

traditional Coke.

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STRATEGIES FOR GAINING MARKET SHARE

Strategy When Use How apply in Market

Place

Cost-Implications

1. Price To gain share in a

product line (a) where

there is room for

growth: (b) in

launching a new

product, preferably in

a growth market.

A. Set general market

price level below

average (“catch share

generally strategy)

B. Lower prices at

specific target

customer accounts

where reduced prices

will capture high

volume accounts and

where competition in

vulnerable on a price

basis : lower prices

enough to keep the

business

C. Lower Prices

against specific

competitions who will

not or cannot rect

effectively.

Will lower gross

margin by decrease-

sing spread between

cost and price for a

period of time.

Will lower cost as

cumulative volume

increases and costs

move down the

experience curve.

2. New

Product

When a new product

need (cost or

performance) can be

uncovered and a new

product will (a)

displace existing

products on a cost or

performance basis. or

A. Develop and launch

the new product

(Generally )

B. T

Arget specific

customers and market

segments where the

16

(b) expand the market

for a class of product

by tapping previously

unsatisfied demand.

need for the product is

strongest and

competition most

vulnerable and

immediate large gains

in share can be

obtained.

3. Service To gain share for

specified product lines

when competitive

service levels do meet

customer

requirements.

A. Improve service

generally beyond

competitive levels by

increasing capacity for

specified product lines.

B. Target specific

accounts where

improved service will

gain share and the

need for superior

service is high

C. Offer additional

services required in

general or at specific

customers-

information,

engineering advice,

etc.

D. Expand distribution

system by adding more

distribution points.

Cost of adding

capacity and/or

bolstering service

systems.

Cost of expanding

the distribution

system, including

additional inventories

required.

4. Quality

/strength

of

When a market

segment or specific

customers are getting

A. Add salesmen or

sales representatives to

improve call frequency

Salary and overhead

cost of additional

salesman or

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marketin

g

inadequate sales force

coverage (too few

calls/month) or inferior

quality or coverage

(poor salesmen or

insufficient

information conveyed

by salesmen)

above competitive

levels in target

territories or at target

accounts.

B. Sales training

programs to improve

existing sales skills,

product knowledge,

and territorial and

customer management

abilities.

C. Sales incentive

program with rewards

based on share

increases at target

customers or in target

market of products.

representatives

Cost of training for

retraining

Cost of incentive

program

5.

Advertisi

ng and

sales pro-

motion

a) When a market

segment or specific

inadequate exposure to

product, service, or

price benefits

compared to

competition (b) A

change in the benefits

offered is made and

needs to be

communicated.

A. Select appropriate

media to reach target

customer groups.

B. Set level and

frequency of exposure

of target customers

high enough to create

adequate awareness of

benefits and counter

level of competitive

efforts.

Cost of creative work

to create campaign.

Production and

media costs

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BRAND LOYALTY

From a marketing strategy viewpoint, brand loyalty is a very important concept.

Particularly in today's low-growth and highly competitive market-place, retaining brand-

loyal customers is critical for survival; and it is often a more efficient strategy than

attracting new customers. Indeed, it is estimated that it costs the average company six

times more to attract a new customer than to hold a current one. Brand loyalty is often

thought of as an internal commitment to purchase and repurchase a particular brand. As a

behaviour phenomenon brand loyalty is simply repeat purchase behaviour.

Both cognitive and behaviour approaches to studying brand loyalty have value. We

define brand loyalty as repeat purchase intentions and behaviours.

Brand loyalty may be the result of extensive cognitive activity and decision making.

Brand-loyal behaviour may occur without the consumer ever comparing alternative brands.

Decisions have to be made about where and when to purchase the product; some

knowledge of the product and its availability must be activated from memory; intentions to

purchase ft and satisfaction influence the purchase behaviours.

i) Undivided brand loyalty is, of course, an ideal. In some cases, consumers may

purchase only a single brand and forego purchase if it is not available.

ii) Brand loyalty with an occasional Swatch is likely to be more common, though.

Consumers may switch occasionally for a variety of reasons: their usual brand may

be out of stock, a new brand may come on the market and tried once, a competitive

brand is offered at a special low price, or a different brand is purchased for a special

occasion.

iii) Brand-loyalty switches are a competitive goal in low-growth or declining markets.

However, switching loyalty from one to another of the brands of the same firm can

be advantageous.

iv) Divided brand loyalty refers to consistent purchase of two or more brands.

v) Brand indifference refers to purchases with no apparent repurchase pattern. This is

the opposite extreme from undivided brand loyalty. While we suspect total brand

indifference is not common, some consumers of some products may exhibit this

pattern.

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Developing a high degree of brand loyalty among consumers is an important goal of

marketing strategy. Yet the rate of usage by various consumers cannot be ignored. For

simplicity, we have divided the dimensions into four categories of consumers rather than

consider each dimension as a continuum.

Brand Loyalty and Usage Rate

The above figure shows that achieving brand-loyal consumers is most valuable

when the consumers are also heavy users. This figure could also be used as a strategic toot

by plotting consumers of both the firm's brands and competitive brands on the basis of

brand loyalty and usage rates.

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Brand Loyalty

Brand - loyal,Heavy users

Brand-Loyal,Light Users

Light UsageBrand-

Indifferent,Brand-

Indifferent,

Heavy Usage

Brand Indifference

SWOT ANALYSIS

SWOT Analysis of Soft Drink Industry in relation to Coke

Strengths

Carbonated soft drink growth 10-15%

Estimated PCC to increase to 6-8

bottles

Weaknesses

Weak infrastructure (esp. Cooling)

Small retailers, less shelf space

Heavy excise duty (40%), recently

have come down a little

Cans have to be imported at high duty

rates.

Problems of empty bottles

Opportunities

Low PCC as compared to

neighbouring countries

Growing rural market internecine

competition

Rising disposable income

Changing consumer trends due to

satellite TV.

Threats

Political risks

Coke and Pepsi indulging in

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CONCLUSION

It was observed that Coca-Cola has been perceived quite positively as it has been

projected. People are aware of the Brand & Awareness of Coca-Cola is quite high in the

market. When a product is launched, avid Coke drinkers choose this soda over any other

competitor simply because it's a Coca-Cola product and they trust it.

Although Coke has been into controversies, people still prefer to stay loyal to the

Brand with Coca-Cola being termed as a more popular brand than Pepsi.

Coca-Cola products would appear, on the shelf, to have the most expensive range of

soft drinks common to supermarkets, at almost double the cost of no name brands. This

can be for several reasons apart from just to cover the extra costs of promotions, for which

no name brands do without. When people buy Coca-Cola they are not just buying the

beverage but also the image that goes with it, therefore to have the price higher reiterates

the fact that the product is of a better quality than the rest and that the consumer is not

cheap.

In supermarkets and convenience stores Coca-Cola has their own fridge which

contains only their products. There is little personal selling, but that is made up for in

public relations and corporate image. Coca-Cola sponsors a lot of events including sports

and recreational activities.

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