COCA-COLA INDIA
MORE THAN JUST SUGAR AND FIZZ
Index :
●Background
●About the company
●Indian Soft drink market
●Recipe of Success
●India’s Evolving Customers
●Current Focus
●Five Force Analysis
●STP
●Conclusion
Presentation By :
Kumar Harsh 133081
Lakshmi
133082
Manya Juneja 133083
Nitika Ahuja 133084
Pankaj Chandna 133085
Parijat Saha 133086
Background
• CEO James Quincey visited India in Aug 2017 to establish Indian branch of the
Company
• Aim to become the 3rd largest market by 2020
• Split market into carbonated & non-carbonated drinks by 2025 or 2030 ( sell
less of Company’s signature product and explore new domains as well)
• Reduce sugar content in products
• Try to introduce juice–based drinks, water and dairy products
• Steering away from core competency and attacking the Indian market head
on with introduction of other products, portraying Coca-Cola as “total
beverage company”
About the company
• Invented in 1886, headquartered in the United State, Atlanta, Georgia
500 200 700,000 $56.4 Bn 21
Brands Spread in Employees Brand Value Companies
countries working valued over $1
worldwide bn+
• 5th in the list of World’s most valuable brand by Forbes
• Tagline changed from “Delicious and Refreshing” to “Taste the Feeling”
• Entered India in 1950, then exited in 1977, re-entered in 1993
• Operations models adopted : Company-owned and Franchisee licensed product
• Other products included : Georgia (tea & coffee), Fuze, Maaza, Limca, Sprite,
Kinley, Thumbs up
• Provided large scale employment in underdeveloped sectors
• Performing well in market than competitors like PepsiCo, Dabur, Parle Agro
Ltd.
• Reduce Sugar content for Indian market, increase emphasis on sale of its smaller-
sized drinks
• Expand Juice supply, add salt-mineral fortified products to its catalogue, use
stevia (natural sweetener)
Indian Soft Drink Market
• 1.34 bn population with median age of 27yrs, huge customer base for non-
alcoholic beverage
• India Food Report, 2016 valued India’s beverage industry at $ 19.5 bn with
20-23% growth
• Hot beverages ruling the market share like tea, coffee
• Juice based drinks growing rapidly as compared to carbonated drinks
• 2016 sales figures depicted the rise in sales of Real, Slice , Tropicana ,
Roofafza, Tang, pushing Coke and Pepsi out of Top-5
• Local Manufacturers like Manpasand Beverages, Paper Boat, Jayanti
Beverages, Xalta, Campa etc were gaining the popularity
• Larger state markets like Delhi, MP, UP, Tamil Nadu saw new local
manufacturers growing
• Introduction of Aampanna and Jaljeera saw a welcoming response from
Health aware customer base
COCA COLA’S Recipe for Success
➢ Defence Strategy Used: Mobile Strategy
○ Coca Cola collaborated with Parle-Bisleri Group; acquired famous
brands like Thums Up, Limca, etc.
○ As a result got a hold over 60% market share
Marketing Strategies:
➢ Advertising campaigns:
○ Featured famous actors
○ Used appealing tag lines; “Thanda Matlab Coca-Cola
➢ Active on Social Media: Facebook Page had approximately 105M followers
in 2017
➢ Came up with Coca-Cola India Foundation:
○ Committed to sustainable development.
○ Helped NGOs with monetary resources and other assistance
➢ Value Creation:
○ Availability, Affordability, Acceptability.
○ Parivartan – Training to 2,60,000 retailers in order to stand out in its
services
○ They framed strategies customised according to the Indian
Subcontinent for better results
India’s Evolving Customers
Change in target as the customers demands are changing.
Drives a need to reposition the Company in the Market.
➢ Indian customers were becoming more demanding and
health driven.
➢ Desired products that catered to health and were easy to
consume.
○ Why?
■ Increase in Urbanization
■ Rapid growth and spread in retail sectors
■ Internet Penetration and hence increased
awareness about well-being and health
➢ Expected healthier products by 2025
○ Demand for functional foods and beverage like juive,
vitamin water, energy drinks
○ Market predicted to reach $3.2 Billion by 2022
Current Focus
• Primary focus has always been on carbonated drinks.
• To ensure sustainable growth the company expanded its product line to
healthier foods and beverages.
Examples: Vio (Flavoured milk beverages), Zico (Cocunut Water) and
Fuza tea.
• Coca-Cola also announced that it intends to invest $1.653 billion in
developing an agriculture-focused ecosystem and introduce fruit based
products over next five years.
• This involved four initiatives -
1. Adding juice to sparkling portfolio.
2. Enhancing local fruit variants within existing juice portfolio.
3. Launching a new range of products.
4. Exporting Indian fruits to global systems.
Five Force Analysis
❑ Exsisting Competition-
• Pepsico India Holdings Private Ltd
• Parle Agro Private Ltd
• Hector Beverages Private Ltd
• Dabur India Ltd
❑ Threat of Substitutes-
• Pepsi, Tropicana Essentials, Quaker Oats
• Frooti, Appy Fizz, Bailey
• Paper Boat, Chikki Peanut Brittle
• Real juices, Culinary pastes, purees, Coconut milk
❑ Bargaining Power of Customers-
• Look for options that cater to health and well-being
❑ Threat of New Entrants-
• Paper Boat by Hector Beverages entered the market
in 2009 by employees of Coca- Cola that gained
success by targeting memories.
STP-
❏ SEGMENTATION
● Geographic- Indian market
● Demographics- Appealing to indian youth
● Psychographic- Affordable in rural areas too
❏ TARGETING
● Primary focus on youth
❏ POSITIONING
● Established as cool, trendy by roping in famous celebrities for
advertisements
● Adapting to changing target demands- Focus on healthier products
❏ VALUE CREATION
● It focused on affordability, so that rural people could also afford it
● Acceptability: communicated more in alignment with the market
experience and abstract feelings
● Availability: whoever desires it should find it, so worked on availability in
the retail stores
Conclusion-
• Marketing share of Coca-Cola dropped between 2012-2016
• The key decision problems were -
Brand extension
Focus on core competency
• Due to lifestyle changes in Indians there was an increase in demand for
more healthier and less sugary beverages
• Coca-Cola can generate alternatives by introducing healthy drinks
• Mobile Defense strategy used and the Parle - Bisleri partnership lead to
success
• More Marketing strategies such as intensive advertising campaigns and
social media publicity and appealing taglines were introduced
