GROUP MEMBERSVinit Vashishth

Shahbaaz AhmedAditya Khurana

Asmita SinhaPiyush Sharma

Company Overview

• Coke re-entered India in 1993

• The CEO of the company is Muhtar Kent, with its global headquarter in Atlanta, Geogia.

• Coke India comprises of:

• Coca-Cola India

• Hindustan Coca-Cola Beverages

• Franchisee bottling operations

• Coke globally serves 500 brands in 200 countries @ 1.7 billion servings per day

• Operates a franchised distribution system (1889)

• Market Cap: $167.25 Billion (Global)

• Revenues: $46.542 Billion (Global)

• Employees = 25K direct & 150K indirect (India)

Brief History

Up till 1977, Coca-cola was the leading soft drink brand in India.

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 acceptable.

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.

For over a decade, Parle led the Indian soft-drinks market, with its market share reaching a peak of 70% in 1990.

Entry Strategy

• 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 brands.

• As an entry strategy, CCI took over Parle Foods.

• Over a period of time, CCI also bought certain bottling units that earlier belonged to Parle or individual distributors.

• With the entry of Coke, CCI decided not to promote the cola brand they took over

• 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.

• In 1993, Thumps Up, Gold Spotand, Limca enjoyed around 75% share of the CSD market.

Mission

The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs:

1. Consumer demand drives everything we do.

2. Brand Coca Cola is the core of our business

3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink through out the day.

4. We will be the best marketers in the world.

5. We will think and act locally.

6. We will lead as a model corporate citizen.

Values

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

Vision

• PROFIT: Maximizing return to shareowners while being mindful of 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 peoples’ Desires and needs.

• PARTNERS: Nurturing a winning network of partners and building mutual loyalty.

• PLANET: Being a responsible global citizen that makes a difference.

Product Specifications

Sales Promotion Activities

Coca-Cola Cricket

Coca-Cola Food Mela

Coca-Cola GO-RED

Coca-Cola & Mc Donald’s- “We go together” joint promotion to reinstate amongst consumers a real sense of the affinity that, both shares globally.

Segmentation & Targeting

• Segmentation- AGE

GENDER

RURAL VS. URBAN MARKET

• Targeting-

• Diet coke: weight consciousness

• Maaza: kids , juice loving people

• Sprite: young people

• Thums-up: confident, mature and uniquely masculine attitude people

• Fanta: girls, ladies

SHELF DISPLAY DISPLAY OF RACK VISI COOLER

Competitors

Organizational StructureChair Person

G.M.

Marketing Manager Accounting Dept. Shipping Deptt.

Factory Manager

Marketing Manager Production Manager

Quality Control

Mechanical Engineer

Shipping Manager

ShippingShipping Officer

Personnel Manager

Sales Manager (Base)Sales Manager O/S

Sales OfficerSales Officer

Sales SupervisorSales Supervisor

Sales ManSales Man

Distribution Officer

Rewards

• Employee salary increment

• Grade Jump, Designation change

• Annual incentive Plan (AIP) (for business performance, but fixed)

• Personal Progress report (PPR) (Annual Appraisal)

Yearly Basis

• Making the move (MTM, sales target achieve)

• Monthly turn hall (extraordinary performance)Monthly Basis

• Employee of the Quarter (EOQ, non sales)

• Sales Dangle context

• Gold ContextQuarterly Basis

Distribution

• Area wise distribution & promotion schemes

• Focus on high traffic locations

• Railway stations , Bus Stands

Plant Warehouse

Direct Route Market

Indirect Route Distributor Market

Manufacturing Plant

Company Owned Depot

Primary

Retailers

Customers

Secondary

Tertiary

Home Delivery Agent

COBO

FIFO3 Day

Inventory

Direct

On Order

&

Ready

Stock

Manufacturing Plant

Distributors

Secondary

Retailers

Customers

Secondary

Tertiary

Indirect

Distributors

cover:

500-600

outlets

FOBO

Logistics1. Average Order Size

2. Order Placement

3. Transit time

4. Order Frequency

5. Inventory maintained

6. Technology

7. Mode of Transportation

8. Expenses

9. Warehousing

10. Stock keeping responsibility

• Functions & Problems of Distributors

SWOT AnalysisStrengths Weakness Opportunities Threats

World’s largest brand Negative publicity Acquisition intense competition

Intense competition

Large scale of operations

Sluggish performance in north america

Growing bottled water market

Dependence on bottling partners

Robust revenue growth

Decline in cash from operation activities

Has sufficient capital to expand

Sluggish growth of carbonated beverages

Learnings & Recommendations

• Learnings-

1. The real time order processing system through use of technology helps reduce the lead time

2. 24hrs working i.e. the loading cases in the night saves valuable time

• Recommendations-

1. Pre-sellers shouldn’t be looked at as an extra cost. On the contrary, since their inception sales have risen

2. Order devices at Diamond outlets can facilitate quicker order placement

Thank you