Contents

Introduction to the company........................................................2

Birth of Coca Cola.................................................................................... 2

Death of the Soda Fountain - Rise of the Bottling Industry.....................3

Marketing Objectives of Coca
Cola------------------------------------------------------------

Marketing strategy of Coca

Cola---------------------------------------------------------------

Situation Analysis.......................................................................4
Company Analysis................................................................................... 4
Mission Statement................................................................................... 4
Vision Statement..................................................................................... 4
Market Share........................................................................................... 4
SWOT Analysis Of Coca Cola...............................................................11
Strengths............................................................................................... 11
Weaknesses.......................................................................................... 11
Opportunities........................................................................................ 12
Threats.................................................................................................. 13
Market Segmentation................................................................14
Behavioral base........................................................................................ 14
Cognitive base.......................................................................................... 14

Conclusion................................................................................20

Bibliography..............................................................................22

1
Incremental Improvement

Coca cola jumbo is an example of incremental improvement made by

Coca cola. It was 2.25 liter bottle introduced few years ago in Nepal.
The purpose of this packing is to offer the Coca cola to a family for
one or two time meals. Price of this pack is also kept low so that is
can be affordable easily by the consumers.

Introduction to the company

Coca cola International is a world renowned brand. It is a very well

organized multinational company, which operates almost all over the
world. They produce, one of best carbonated drinks in the world.
Coca cola is a symbol of hygiene, quality and service, all over the
world. Coca cola is producing Cola for more than 100 years and it has
dominated the world market for a long time. Its head office is in
Atlanta.

History of coca cola

In May, 1886, Coca Cola was invented by Doctor John Pemberton a

pharmacist from Atlanta, Georgia. John Pemberton concocted the
Coca Cola formula in a three legged brass kettle in his backyard. The
name was a suggestion given by John Pemberton's bookkeeper Frank
Robinson.

Birth of Coca Cola

Being a bookkeeper, Frank Robinson also had excellent penmanship.
It was he who first scripted "Coca Cola" into the flowing letters which
has become the famous logo of today.

The soft drink was first sold to the public at the soda fountain in
Jacob's Pharmacy in Atlanta on May 8, 1886.

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About nine servings of the soft drink were sold each day. Sales for
that first year added up to a total of about $50. The funny thing was
that it cost John Pemberton over $70 in expanses, so the first year of
sales were a loss.

Until 1905, the soft drink, marketed as a tonic, contained extracts of

cocaine as well as the caffeine-rich kola nut.

Marketing Objectives of Coca Cola

o To increase the market shares in the upcoming years.
o To increase awareness of the product on the market.
o To survive the current market war between
competitors.
o To increase the size of the worldwide Coca Cola
enterprise by 10% .
Marketing strategy of Coca Cola
o Accelerate carbonated soft-drink growth, led by Coca-
Cola.
o Selectively broaden the family of beverage brands to
drive profitable growth.
o Grow system profitability and capability together with
our bottling partners.
o Serve customers with creativity and consistency to
generate growth across all channels.
o Direct investments to highest potential areas across
markets.
o Drive efficiency and cost-effectiveness everywhere
o Integrated promotional activities.

3
Situation Analysis

Company Analysis

Mission Statement
Mission & Vision

The Coca Cola Company Missions are

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 "Roadmap" for winning together with our bottler partners

i) To refresh the world in mind, body and spirit.

ii) To inspire moments of optimism through our brands and action
iii) To create value and make a difference everywhere we engaged

The Coca Cola Company Visions are:

Profit : Maximising return to shareholders, while being

mindful of our overall responsibilities,

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

people's desires and needs

Partners : Nurturing a winning network of partners and

building mutual loyalty

Planet : Being a responsible global citizen that

makes a difference

Productivity : Be a highly effective, lean and fast-moving

organization
4
Market Share

Coca-Cola, imported from India, was first introduced into

Nepal in 1973, with local production of Coca-Cola beginning in
1979. Bottlers Nepal Limited (BNL) is the only bottler of Coca-Cola
products in Nepal, and has two bottling plants; namely Kathmandu
(Bottlers Nepal Limited BNL) and Bharatpur (Bottlers Nepal
(Terai) Limited,) which is 160 km from Kathmandu, its capital. Coca
Cola enjoys 67.8 percent share in Nepals carbonated soft drinks
market, according to ACNeilsen, a global marketing research firm.
The multinational brand valued at $70 billion has presence in 200
countries.

SWOT Analysis Of Coca Cola

SWOT Analysis, which is based on thorough review of the business

(corporation, product category competition, customers and products),
identities and evaluates the internal strengths and weakness of the
companies well as its external threats and opportunities. The
marketing mix is driven by the results of the SWOT analysis.

Strengths

The best global brand in the world in terms of value.

According to Interbrand, The Coca Cola Company is the most
valued ($77,839 billion) brand in the world.

Worlds largest market share in beverage. Coca Cola holds

the largest bedverage market share in the world (about 40%).

5
 Strong marketing and advertising. Coca Cola advertising
expenses accounted for more than $3 billion in 2012 and
increased firms sales and brand recognition.

Most extensive beverage distribution channel. Coca Cola

serves more than 200 countries and more than 1.7 billion
servings a day.

Customer loyalty. The firm enjoys having one of the most

loyal consumer groups.

Bargaining power over suppliers. The Coca Cola Company

is the largest beverage producer in the world and exerts
significant power over its suppliers to receive the lowest price
available from them.

Corporate Social Responsibility (CSR). Coca Cola is

increasingly focusing on CSR programs, such as
recycling/packaging, energy conservation/climate change,
active healthy living, water stewardship and many others,
which boosts company social image and result in
competitive advantage over competitors.

Weaknesses

Significant focus on carbonated drinks. The Coca Cola

Company is still focusing on selling Coke, Fanta, Sprite and
other carbonated drinks. This strategy works in short term as
consumption of carbonated drinks will grow in emerging
economies but it will prove weak as the world is fighting obesity
and is moving towards consuming healthier food and drinks.

Undiversified product portfolio. Unlike most companys

competitors, Coca Cola is still focusing only on selling
beverage, which puts the firm at disadvantage. The overall

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 consumption of soft drinks is stagnating and Coca Cola
Company will find it hard to penetrate to other markets (selling
food or snacks) when it will have to sustain current level of
growth.

High debt level due to acquisitions. Nearly $8 billion of

debt acquired from CCEs acquisition significantly increased
Coca Cola's debt level, interest rates and borrowing costs.

Negative publicity. The firm is often criticized for high water

consumption in water scarce regions and using harmful
ingredients to produce its drinks.

Brand failures or many brands with insignificant amount

of revenues. Coca Cola currently sells more than 500 brands
but only few of the brands result in more than $1 billion sales.
Plus, the firms success of introducing new drinks is weak. Many
of its introduction result in failures, for example, C2 drink.

Opportunities

Bottled water consumption growth. Consumption of bottled

water is expected to grow both in US and the rest of the world.

Increasing demand for healthy food and beverages. Due

to many programs to fight obesity, demand for healthy food
and beverages has increased drastically. The Coca Cola
Company has an opportunity to further expand its product
range with drinks that have low amount of sugar and calories.

Growing beverages consumption in emerging markets.

Consumption of soft drinks is still significantly growing in
emerging markets, especially BRIC countries, where Coca Cola
could increase and maintain its beverages market share.

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 Growth through acquisitions. Coca Cola will find it hard to
keep current growth levels and will find it hard to penetrate
new markets with its existing product portfolio. All this can be
done more easily through acquiring other companies.

Threats

Changes in consumer tastes. Consumers around the world

become more health conscious and reduce their consumption
of carbonated drinks, drinks that have large amounts of sugar,
calories and fat. This is the most serious threat as Coca Cola is
mainly serving carbonated drinks.

Water scarcity. Water is becoming scarcer around the world

and increases both in cost and criticism for Coca Cola over the
large amounts of water used in production.

Strong dollar. More than 60% of The Coca Cola Company

income is from outside US. Due to strong dollar performance
against other currencies firms overall income may fall.

Legal requirements to disclose negative information on

product labels. Some Coca Colas carbonated drinks have
adverse health consequences. For this reason, many
governments consider to pass legislation that requires
disclosing such information on product labels. Products
containing such information may be perceived negatively and
lose its customers.

Decreasing gross profit and net profit margins. Coca

Colas gross profit and net profit margin was decreasing over
the past few years and may continue to decrease due to higher
water and other raw material costs.

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 Competition from PepsiCo. PepsiCo is fiercely competing
with Coca Cola over market share in BRIC countries, especially
India.

Saturated carbonated drinks market. The company

significantly relies on the carbonated drinks sales, which is a
threat for the Coca Cola as the market of carbonated drinks is
not growing or even declining in the world.

Market Segmentation

It means that you divide the target market in to different groups.

Market consists of buyers and buyers differ in one or more ways.
They may differ in wants, resources, locations and buying practices.
Through market segmentation companies divide large,
heterogeneous markets into smaller segments that can be reached
more efficiently and effectively with products and services that match
their unique needs.Segmentation is done on basis of the previously
mentioned external factors and the following:

Behavioral base

It is how people perceive a specific product, in short psychological

analysis of a product. Coca cola all over the world is recognized as a
quality drink and therefore people drink it without any hesitation
whenever they are thirsty or otherwise. So marketers of Coca cola
have made it a drink for all people and for diabetic people they
introduced diet Coca cola.

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Cognitive base

It pushes and pulls the consumer. If the outlook of Coca cola bottle is
desirable and it attracts the consumer, he will buy it even if he isnt
thirsty.

Key Success Factors. . .

The Coca-Cola Company is one of the largest, most
successful and most widely recognized corporations in
existence. Coca-Cola is a dominating force in the beverage
industry and sets a very high standard of competition.
Research shows that its trademark is recognized by over
94% of the worlds population. There are many factors
contributing to Coca-Colas success, however, it is believed
that their key success factors are Marketing, Innovation,
and Globalization.

Coca-Cola Faces The Sugar-Tax Problem In South Africa

in 2017

Problem #1

: Coca-Cola India failed to conduct research on its audiences. It did a poor

job gathering information on individuals living in rural India, the CSE,
pesticide regulations, and the 11 soft drink companies that were also
accused of contamination (Kaye, 1). This lack of knowledge was a major
mishap in Coca-Colas response to the CSEs allegations.

Solution: In order to have reached its target audience with its campaign,
Coca-Cola should have conducted research to find out what media its
audience was exposed to and how they received information. This way the
company could have ensured that its main consumers rural communities
were actually seeing that it was being responsive to the CSEs allegations

. Coca-Cola should have surveyed how many people living in rural

communities heard of the allegations and how they heard of them. This
would have been beneficial in figuring out which mediums Coca-Cola could

10
have used to reach the rural audience during its campaign. The company
should have conducted research on the CSEs history and its previous
claims against other beverage companies. This would have helped to
determine the organization's credibility.

In order to properly defend itself, Coca-Cola should have better

familiarized itself with Indias pesticide regulations within the beverage
industry

2 Coca-Cola should have researched the other 11 companies that were

similarly accused and taken their tactics into consideration. This could have
helped the company understand how the other companies were handling
the situation.

Problem 2: In 2001, Coca-Cola found extreme success in creating two

different marketing strategies one for the rural community and one for the
urban community (Kaye, 6-7). The company acknowledged that these
audiences received and reacted to information differently. However, Coca-
Cola didnt use this tactic in its CSE campaign. While posting the Myth vs.
Fact section on its website was a good idea in theory, Coca-Cola didnt take
into consideration that the rural community may not have access to
computers and the Internet

Solution: Coca-Cola should have better planned its campaign to utilize

avenues of communication that the rural population had access to. In turn,
its response to the CSEs allegations would have spread throughout the
rural population more productively.

Problem #3: Another tactic Coca-Cola employed was threatening legal

action against the CSE and filing a gag order following the incident . Not
only did this action exacerbate the already deepening divide between Coca-
Cola and its public, but also it made Coca-Cola appear conspicuous and
guilty. Gag orders are not historically used often in crisis communications
and are widely viewed as unconstitutional, so employing one had a
negative connotation that further damaged Coca-Colas image (Parkinson,
199). Regardless of intent or culpability, Coca-Cola only succeeded in
showing that it might have something to hide.

Solution:

Coca-Cola should have avoided filing a gag order altogether

. Gag orders are not commonly used in public relations. This demonstrates
that Coca-Cola could have communicated and navigated its crisis without
one.

The organization should have only taken this route as a last resort if all
other options had been exhausted. Coca-Cola India Case Study Analysis

11
 Problem #4: When Coca-Cola did answer to the public, it reacted by
attacking the credibility of the CSE, a defense mechanism that only
produced more discord (Kaye, 12). By doing this, Coca-Cola lost an
opportunity to collaborate with the CSE in finding a solution that met all
parties needs.

Solution:

Instead of attacking the CSE, the organization should have released a

statement announcing that they would look into this issue and conduct
more research.

Next, it should have partnered with the CSE and hired researchers to look
into the matter further. In turn, this would have shown cooperation and
have potentially swayed public opinion.

CONCLUSIONS
The Coca-Cola Company is the world's largest beverage company, largest
manufacturer, distributor and marketer of non- alcoholic beverage
concentrates and syrups in the world, and one of the largest corporations in
the United States.

As others, Coca-Cola Company also has Integrated Marketing

Communication (IMC) objectives and strategy. The objectives of Coca-Cola
campaign are to make it be more motivated. Marketing campaign strategy
consists of public relation strategy, advertising strategy and marketing
strategy. Public relation strategy is used to establish a mutual
understanding and create a good image or credibility from the company
with its customers. It can be achieved by sponsoring many events, such as
sport or charity events. Those are what Coca-Cola Company does too.

Advertising strategy is usually done through media, either print media (like
newspapers, magazines, etc), broadcast media (like TV and radio) or digital
media (like internet). It aims to tell the information about the product to
community.

The strategy that relate with the sales is marketing strategy. This talks
about the right product, price, place, and promotion in order that people
buy the product and satisfy with it. Coca-Cola produces the right product
with many options of sizes and taste; sets the right price with more
expensive price than others (because of the good quality and values of
Coca-Colas products); definite the right place with stocking up products in
supermarkets and retailing stores; and uses the right promotion with sales
promotion. Marketing tactics are also done by right segmentation. Coca-
Cola Company produces many kinds of product. Each product satisfies a
certain group of target market. Its target markets are usually teenagers.

12
 Recommendations
After thorough research, we come to the conclusion that the marketing
strategy of Coca Cola is

working for them and the product is gaining popularity among youth day by
day.

Coca Cola Company should try to emphasis more on providing

their infrastructure in the market to facilitate their customers.
According to the survey, conducted by the international firm
Indian people like little bit sweeter cola drink. So for this coca
cola company should produce their product according to the
local demand.
Marketing team should try to increase the availability of Coke
in rural areas./
They should also focus the old people.
Now young generation has a trend to drink a coke 2 regular
bottles at same time,
So providing more satisfaction to them company should
introduce ~ liter disposable bottle.

My recommendation is to make sure the company is always

doing market research. This way they are able to get as much
feedback as possible from consumers. Next, analyze this data
as fast as possible, and then develop the new product based
upon this data. Once the product is developed, get it to the
marketplace quickly. Time is a very critical factor. In my
opinion, with all of these factors taken into consideration any
company should give any a good jump on market share.

Bibliography
The following are the reference material where the information is
collected.

BOOKS

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 For God, Country, and Coca-Cola: The Definitive History of the
Great American Soft Drink and the Company That Makes It, By:
Mark Pendergrast.

The Sparkling Story of Coca-Cola: An Entertaining History

Including Collectibles, Coke Lore, and Calendar Girls, By:
Michael Karl Witzel & Gyvel Young Witzel
Websites

www.coca-colaindia.com

www.coca-cola.com

www.wikipedia.org

www.thecoca-colacompany.com

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