MARKETING STRATEGIES OF
Coca-Cola Company is the world's largest nonalcoholic
Within our more than 400 brands are nearly 2,400
Operations in more than 200 countries.
Coca-cola accounts for approximately 1.3 billion
servings worldwide of the 50 billion beverage
servings consumed every day.
Coca cola was invented by john stith pemberton in 1886 in
The coca-cola formula and brand was bought in 1889 by Asa
Candler who incorporated the coca cola company in 1892.
Within four years, his merchandising flair helped expand
consumption of Coca-Cola to every state and territory.
Under Robert W. Woodruff six decades of leadership , The
Coca-Cola Company took the business to unrivaled heights of
commercial success, making Coca-Cola an institution the
The Coca Cola Company creates value by executing
comprehensive business strategy guided by six key beliefs:
Consumer demand drives everything we do.
Brand Coca Cola is the core of our business
We will serve consumers a broad selection of the nonalcoholic
ready-to–drink beverages they want to drink through out the day.
We will be the best marketers in the world.
We will think and act locally.
We will lead as a model corporate citizen.
Coca-Cola is guided by shared values that both the employees as individuals and the
Company will live by; the values being:
LEADERSHIP: The courage to shape a better future
PASSION: Committed in heart and mind
INTEGRITY: Be real
ACCOUNTABILITY: If it is to be, it’s up to me
COLLABORATION: Leverage collective genius
INNOVATION: Seek, imagine, create, delight
QUALITY: What we do, we do well
PROFIT: Maximizing return to shareowners while being mindful of
PEOPLE: Being a great place to work where people are inspired to be the
best they can be.
PORTFOLIO: Bringing to the world a portfolio of beverage brands that
anticipate and satisfy peoples’ Desires and needs.
PARTNERS: Nurturing a winning network of partners and building
PLANET: Being a responsible global citizen that makes a difference.
Coco cola in India
Coca-Cola was the 1st international soft drinks
brand to enter India in early 1970’s.
Indian market was dominated by domestic brands,
with Limca being the largest selling brand.
Cola was the largest selling flavor with market
share of 40%, Lemon drinks 31% and orange drinks
Withdrawal from India
Up till 1977, Coca-cola was the leading soft drink brand in
But due to norms set by the Foreign Exchange Regulation Act
(FERA), Coca-Cola left India and did not return till 1993 after a
16 year absence from the Indian beverage market.
FERA needed Coca-Cola to reveal its secret concentrate
formula as well as reduce its equity stake which was not
Pure drinks, Delhi launched Campa-Cola, to take advantage of
Coke’s exit and by the end of 70’s, was the only Cola drink in
the Indian market.
In 1980, Parle, another major Indian player launched ThumsUp,
the drink which till date is most popular soft-drink in India.
Pure Drinks strongly objected to ThumsUp being called a “soft”
drink as it felt its taste is too strong.
For over a decade, Parle led the Indian soft-drinks market, with
its market share reaching a peak of 70% in1990.
Re-entry into the Indian Markets
Coca-Cola got the permission to enter the country with a 100 per
cent unit in India.
On September 22, 1993, the company bought out the Parle
As an entry strategy, CCI took over Parle Foods.
With a fine and detailed distribution network in place, Coke was
now ready to take on archrival
Over a period of time, CCI also bought certain bottling units that
earlier belonged to Parle or individual distributors.
In 1993, Thumps Up, Gold Spotand, Limca enjoyed around 75% share of
the CSD market.
With the entry of Coke, CCI decided not to promote the cola brand they
took over i.e., they decided to withdraw Thumps Up from the market. This
however, did not pay off since the cola market was (and still is) highly
polarized and people were unwilling to compromise on the taste of their
As a result, Coke’s market share (Coke + Thumps Up) fell to nearly 55%.
After 3 years of incurring losses, CCI finally took a decision to re-launch
Thumps Up. This strategy paid off and today almost 59% of the market is
governed by CCI.
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
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.
The company has doubled its volumes and trebled its profits between
2001 and 2004.
Marketing Strategies of Cocacola India
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 Coca- Cola,
diet Coke, Sprite and Fanta
Product line soft-drink:
Diet coke: weight consciousness
Maaza: kids , juice loving people
Sprite: young people
Thums-up: confident, mature and uniquely
masculine attitude people
Fanta: girls, ladies
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.
Coca cola is the world's favorite drink. It is the
world's most valuable brand and the most
recognizable word across the world.
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.
The competitor on the cola category is Pepsi.
This brand is the one of the fastest growing brand in
Sprite is liked by all age groups & people. Jan 09
report of “The times of India” claims sprite to be the
second brand in sales after Thumsup
Competitor : 7up & Mountain dew
Limca is cloudy lemon in flavor. This is very unique in
It has white in color.
Competitor : Nimbooz , Lime merinda
Fanta has two flavors apple & orange. This is very
popular drink among females.
The '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".
Competitor: Mirinda, Parle’s Appy fizz
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, frooti
MINUTE MAID pulpy orange
This is orange juice.
This contains no sugar & added flavor.
This is a family drink.
Competitor : Tropicana
This comes in two variety-mineral water & soda.
Mineral water is used by all but soda is commonly
used for alcoholic purpose by adult people.
Competitor : Aquafina, Bisleri
Intensive Brand Building
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
'Coca-Cola' is the most recognised trademark,
recognised by 94% of the world's population and
is the most widely recognised word after "OK"
Thums up of coca cola is targeted to the adventurous and
energetic people that are interested in adventure and love taking
risk to succeed.
Minute Maid of Coca cola are specially targeted to
healthconscious customers and want health drink having natural
energy in it.
The drink is specially launched for the lady sector of the
population and these drinks are positioned in that way only.
RURAL VS. URBAN MARKET
BRAND LOCALISATION STRATEGY: THE TWO INDIAS
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 country’s population.
INDIA B: “THANDA MATLAB COCA COLA”
INDIA B included small towns and rural areas,
comprising the other 96% of the nation’s
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 Vending & 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 covering.
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.
To effectively achieve the stable balance
between sales and covering the production
Company has priced the product same as that
of its major competitor of the market leader
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.
For example-as coca cola is giving free pet bottles and other trade
schemes to distributors, agency owners and retailers.
Coca-cola is also using Pull strategy in which they are using advertising
and promotion to persuade consumers to ask intermediaries for the
company brand product by this way coca cola inducing customer to order it
For example-Coca cola is using flanges, display racks, tier racks, standees,
mobile hangers and visicooler brand strips.
SALES PROMOTION ACTIVITIES
Coca-Cola Food Mela
Coca-Cola & Mc Donald’s
Coca-Cola & key account of MC Donald’s launched the
“we go together” joint promotion to reinstate amongst
consumers a real sense of the affinity that, both shares
The promotion kicked off with point of sales material
(Danglers, Bunting etc) displayed at all MC Donald’s
restaurants along with a special offer for coke & fries.
Availability is done according the type of outlet.
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
WARM DISPLAY RACK
SHELF DISPLAY DISPLAY OF RACK VISI COOLER
BRAND AMBASSDORS & TV COMMERCIALS
Supply chain of coca-cola
C & F agent
FACTORS FOR SUCCESS
Diverse product portfolio
Affordable entry price point
Strong brand pull
Ultra low cost model
Minimized internal capital requirements
Rural Market Scenario
The rural population in India accounts for around
627 million, which is exactly 74.3 percent of the
1/3rd of country’s GNP
450 districts, 6,30,000 villages approx.
Key to success in Rural India
Promotion and Marketing Communication
CCI began focusing on the rural market in the early
2000s in order to increase volumes.
The Decision was not surprising…
Flat sales in urban markets.
Huge size of untapped rural market.
Improvement in income and spending power of rural
Better physical distribution channel.
Aspirations for urban lifestyle.
Increased awareness due to television reach.
Challenges for Coke
Poor rural Infrastructure.
Erratic power supply.
Different consumption habits.
Preference for traditional cold beverages
Price of the branded beverages.
CCI’s Rural Mktg. Strategy
Capacity expansion – 25 prod. lines and doubled bottle capacity.
Unique and different distribution strategy – hub & spoke distribution.
Coverage of 1,58,342 villages by Aug. 2003 (81,383 in 2001).
2,00,000 refrigerators to rural retailers.
Introduction of 200ml bottle (chota coke).
Priced at Rs. 5, closed the gap between Coke and basic refreshments.
Mass media marketing.
Launched TVCs targeted at rural consumers.
Coke realized that the communication media used in
urban markets would not work in villages because
of low penetration of conventional media.
Outdoor advertising and hoardings, etc.
Participation in weekly mandies, haats, & fairs.
Increased ad-spend on Doordarshan .
Importance of Advertising in Rural
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
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 image of the product.
Issues to focus….
Pesticides Issue and building confidence .
Infrastructure in distribution network.
Competing with local brands
Rural market is more comfortable..
High growth in terms of sales
Change in the life style
Increase in the per capita income
It can substitute other products
Strength Weakness Oppurtunit Threats
World’s Negative publicity Acquisition Intense
largest brand intense competition
Large scale of Sluggish performance in north Growing Dependence
operations america bottled water on bottling
Robust Decline in cash from operation Has sufficient Sluggish
revenue activities capital to growth of
growth expand carbonated
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
Pepsi and coke both have good brand image.
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.
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
Increasing trend of cold drink of different brands.
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.