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Coca Cola India ICFD Market Entry

Coca-Cola is considering entering the ice cream and frozen desserts (ICFD) market in India. The ICFD market in India is growing rapidly at over 19% annually due to rising incomes and urbanization. Porter's Five Forces analysis indicates the ICFD market in India is currently attractive for new entrants. While competition is high, threats of substitution and new entrants are low. It is an opportune time for Coca-Cola to enter the market given rising consumer demand. However, obstacles include strong competition from established brands, difficulties complying with regulations, and potential water scarcity issues. Coca-Cola's strategies to enter could include acquisitions, leveraging its brand and distribution, and

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Lakshmi Srinivasan
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1K views19 pages

Coca Cola India ICFD Market Entry

Coca-Cola is considering entering the ice cream and frozen desserts (ICFD) market in India. The ICFD market in India is growing rapidly at over 19% annually due to rising incomes and urbanization. Porter's Five Forces analysis indicates the ICFD market in India is currently attractive for new entrants. While competition is high, threats of substitution and new entrants are low. It is an opportune time for Coca-Cola to enter the market given rising consumer demand. However, obstacles include strong competition from established brands, difficulties complying with regulations, and potential water scarcity issues. Coca-Cola's strategies to enter could include acquisitions, leveraging its brand and distribution, and

Uploaded by

Lakshmi Srinivasan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Signify Classified - Internal

Group Project – Strategic Management

Coca-Cola India
Ice-Cream and Frozen Desserts (ICFD) Segment

Team : Anurag, Lakshmi, Sachin - 17PT0 - 04, 08, 13 PGDM-PT (17’20)


Signify Classified - Internal
Contents

 Introduction
 About Coca Cola
 Questions
Signify Classified - Internal
About Coca Cola

• Founded – 1886, John Pemberton


• Headquarter – Atlanta(Georgia)
• Portfolio – 500 brands
• Presence – 200 Countries
• Employees – 700,000 Worldwide
• Brand Value – 21 brands over $1 bln.
each
• 5th most valuable brand in 2017
(Forbes)
Signify Classified - Internal
About Coca Cola India

• Entered India in – 1950, exited in


1977 & re-entered India in 1993
• 3 pronged system – Coca Cola
India Pvt. Ltd., Hindustan Coca
Cola Beverage Pvt. Ltd. & Various
Franchise bottling partners
• Intended investment - $7 billion
by 2020
• Steady leadership despite loss of
market share in 2017 yoy basis –
4.7%
• Strong distribution network – 2.6
million outlets , 700,000
distributors & 57 manufacturing
plants
Signify Classified - Internal
Questions

1) Analyse the ice cream & frozen desserts (ICFD) market in


India
2) Analyse the impact of Porter’s five forces as Coca Cola India
enters the ICFD sector
3) Is this an opportune time for Coca Cola India to enter the
ICFD market ? What could be the Pros & cons of entering
market presently
4) Discuss the strategies Coca-Cola India could use to enter the
ICFD market . What are the likely obstacles to Coca-Cola
India’s success in the launch of new ICFD products ?
Signify Classified - Internal

Question No. 1

Analyse the Ice-cream & Frozen


Desserts (ICFD) market in India
Signify Classified - Internal
ICFD India Market Overview

India’s frozen dessert market is projected to grow at a


Compounded Annual Growth Rate (CAGR) of over 19% by
2023, on the back of rising GDP per capita and growing demand
from expanding middle class population. Moreover, rising
adoption of refrigeration facilities in small retail shops & rural
households coupled with growing organized retail and e-
commerce industry is further anticipated to boost ICFD market
in India during the next five years. By ResearchAndMarkets.com

CATEGORIES

• Dairy Based Desserts


• Ice cream & frozen Desserts
• Yoghurt
Signify Classified - Internal
Analysis of ICFD market in India

Prospects

1) Soaring Temperature across India drive


Ice cream Market
2) Improvement in cold chain facilities
supports Ice cream sales in India
3) Premium Ice-cream Market is also
flourishing in India, due to increase in
income level and urbanization
Signify Classified - Internal
ICFD Sector Market Share in India

Ice-Cream & Frozen Dessert Market share in India


Signify Classified - Internal

Question No. 2

Analyse the impact of Porter’s five


forces as Coca Cola India enters the
ICFD sector
Signify Classified - Internal
Porter’s 5 Forces Impact – Coca Cola entry in India in ICFD Sector

THREAT OF NEW
ENTRANT
Low 2/3

SUPPLIER’S BUYER’S
BARGAINING RIVALRY – BARGAINING
POWER EXISTING POWER
COMPETITORS
Medium - 2/3 High 3/3 High 3/3

THREAT OF SUBSTITUTE
Total Score -
Low 2/3 12/15
(attractive)
Signify Classified - Internal
Porter’s 5 Forces Impact – Coca Cola entry in India in ICFD Sector

 THREAT OF NEW ENTRANT (Low – 2/3) As this industry is very capital


intensive due to setting up of costs intensive manufacturing facilities. This
raises the barrier of entry and makes it difficult for small companies to enter

 BARGAINING POWER OF SUPPLIERS (Medium 2/3) The Bargaining Power of


suppliers is medium as there are many players in the market, however no
supplier can afford to loose a customer like Coca Cola from its profile

 BARGAINING POWER OF BUYERS (High 3/3) The bargaining power of Buyers


is high, as there are more options available in the market

 RIVALRY AMONG EXISTING COMPETITORS (High 3/3) The rivalry among


existing competitors is High as competition is not on only in price, but also
on product differentiation

 THREAT OF SUBSTITUTE (Low 2/3) The threat of substitute for Ice cream &
other Frozen Desserts is low
Signify Classified - Internal

Question No. 3

Is this an opportune time for Coca


Cola India to enter the ICFD market ?
What could be the Pros & cons of
entering market presently
Signify Classified - Internal
Right time for Coca Cola India to enter ICFD Sector because…..

 India is one of the fastest growing ice-cream consumption


market in the world.
 Indian Consumers are developing affection for premium
brands among frozen yogurt darlings.
 Indian summers can be hard to hold up under without Ice-
Cream and Frozen desserts.
 Indian Consumers are slowly moving away from fizzy
drinks to healthy options
 Indian Consumers, preferable in metropolitan cities don’t
mind splurging on quality and brand value
 Increase in Income level and urbanisation
Signify Classified - Internal
SWOT Analysis of Coca Cola to enter ICFD sector in India
STRENGTH WEAKNESS

 Strong Global Presence  Late in innovations


 Good employee strength globally  Sluggish Performance back home
 Strong and efficient supply chain network  Reported presence of pesticides in its
 Strong financial condition beverages have caused damage to brand
 Coca Cola has long association with image
international sports events, sponsorships
etc.

OPPORTUNITIES THREATS

 Growing Income and increase in  Difficulty in complying with different


urbanisation government regulations and norms in
 Acquisitions and synergies will different countries
strengthen Coca Cola's place in the industry  Inflation, economic slowdown and
instability
 Strong competition can lead to reduced
market share
Signify Classified - Internal

Question No. 4
Discuss the strategies Coca-Cola
India could use to enter the
ICFD market . What are the
likely obstacles to Coca-Cola
India’s success in the launch of
new ICFD products ?
Signify Classified - Internal
Likely obstacles to Coca-Cola in launching ICFD products in India

 Water Scarcity is major concern in India for


growth of beverages and ICFD Products

 Competition from Brands Like Amul, Kwality,


Vadilal etc. and also from unorganized sector.

 Also there are lot of local players and competing


with them is also a challenge

 Frequent change in Consumer’s tastes and


preferences
Signify Classified - Internal
Strategy recommendation for Coca Cola India to enter ICFD sector

Aggressive
As of 2018, India Advertisement
is home to 1.3 campaign,
billion people. targeting youth,
With increasing Kids and Old
Ice cream is income level and through
associated with urbanization, Attractive
pleasure and maximum schemes and
experimentation business is promotional
Leverage the well suits the new expected from activities.
advantage of age India. The non-urban
agriculture/farm product markets, which
based economy differentiation can has 650,000
Creating a as India is the be created by villages. Hence, in
strong largest producer introducing India, Coca-Cola
distribution as well as flavours new to should increase its
channel & consumer of milk consumers with focus more on
developing and dairy Indian touch non-urban
relationship products markets through
with the Vistaar
local programme
community
Cost advantage + Differentiation mix
Signify Classified - Internal

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