INDUSTRY PROFILE

2.1 ABOUT THE COMPANY

Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its
formula to the Government and reduce its equity stake as required under the Foreign Regulation
Act (FERA) which governed the operations of foreign companies in India. Coca-Cola re-entered
the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An
agreement with the Parle Group gave the Company instant ownership of the top soft drink brands
of the nation. With access to 53 of Parle‟s plants and a well set bottling network, an excellent
base for rapid introduction of the Company‟s International brands was formed. The Coca-Cola
Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were
floated by Parle, as these products had achieved a strong consumer base and formed a strong
brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products
became a part of range of products of the Coca-Cola Company. In the new liberalized and
deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100%
owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. However, this
was based on numerous commitments and stipulations which the Company agreed to implement
in due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would
divest 49% of its shareholding in favor of resident shareholders by June 2002. Coca-Cola is
made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company
Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a
network of 29 Contract Packers that facilitate the manufacture process of a range of products for
the company. It also has a supporting distribution network consisting of 700,000 retail outlets
and 8000 distributors. Almost all goods and services required to cater to the Indian market are
made locally, with help of technology and skills within the Company. The complexity of the
Indian market is reflected in the distribution fleet which includes different modes of distribution,
from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of
Indian cities and trademarked tricycles and pushcarts.

“Think local, act local”, is the mantra that Coca-Cola follows, with punch lines like “Life ho to
aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural India. This resulted in a 37%
growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the
per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml
returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market
accounted for over 80% of India‟s new Coca-Cola drinkers. At Coca-Cola, they have a long
standing belief that everyone who touches their business should benefit, thereby inducing them
to uphold these values, enabling the Company to achieve success, recognition and loyalty
worldwide.
2.2: MANIFESTO FOR GROWTH
2.2.1: VALUES
The values that the employees in the Company are expected to keep up to and work by regularly
are as follows:

LEADERSHIP: To take an initiative and lead, motivate and drive the team with energy and
zeal,to deliver outstanding results.

INNOVATION: To continuously strive for progress and reach the next level of excellence in
everything we do.

PASSION: To be deeply committed and display drive and energy in the quest to deliver
outstanding performance.

TEAMWORK: To unite for greater strength and work collectively as a group towards the
achievement of common goals.

OWNERSHIP: To think and act like owners at all levels; to have decisions taken at the
lowest appropriate level.

ACCOUNTABILITY: To be individually and transparently accountable to our colleagues

for delivering agreed targets and goals.

2.2.2: VISION FOR SUSTAINABLE GROWTH

To provide exceptional strategic leadership in the Coca-Cola India System-resulting in consumer
and customer preference and loyalty, through Coca-Cola‟s commitment to them, and in a highly
profitable Coca-Cola Corporate branded beverages system.

2.2.3: MISSION
To create consumer products, services and communications, customer service and bottling
system strategies, processes and tools in order to create competitive advantage and deliver
superior value to;

Consumers as a superior beverage experience

 Consumers as an opportunity to grow profits through the use of finished drinks

 Bottlers as an opportunity to grow profits in volumes

 Bottlers as a trademark enhancement and positive economic value added

 Suppliers as an opportunity to make reasonable profits when creating real value-added in an
environment of system-wide team work, flexible business system and continuous improvement

Indian society in the form of a contribution to economic and social development.

2.2.4: QUALITY POLICY

“To ensure customer delight, we commit to quality in our thoughts, deeds and actions by
continually improving our processes…Every time.” Separate laboratory is there to control
quality. Continuous monitoring for quality control is there, through online data & various
techniques. A device is there, INCROBICS, which provides data in every 15 sec.

There is monitoring of:

 Height of bottles
 Concentration
 Weight
 Carbon dioxide volume: 4.35
 Temperature in C: 7.35
2.3: ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA

FIGURE : ORGANIZATION STRUCTURE IN COCA-COLA, INIDA

2.4 CARBONATED SOFT DRINK (CSD) INDUSTRY

2.4.1: Industry Structure
There are three major participants in the production-carbonated soft drinks. They are concentrate
producers for example roughly one – half if Pepsi – cola‟s sale are through company owned
bottles ; the remaining volume is sold through franchises bottles line of soft drink in a defined
territory , and not allowed to market to market a directly competitive major brand. The principal
retail channel for channels for carbonate soft drink are supermarkets, convenience store, vending
machines fountain service, and thousand of small outlet. Soft drinks are typically sold in glass
bottle and in plastic and cans except for fountain services. In fountain service syrup is sold to a
retail outlet. Which mixes the syrup with carbonated water for immediate sales.

2.5: CONTRIBUTION TOWARDS ENVIRONMENT

2.5.1: The Coca-Cola System in India Celebrates World Water Day
Reaffirming its goals on Reduce, Reuse and Replenish water and continue with its commitment
towards Water Stewardship and Water Management, The Coca-Cola System in India
commenced the celebrations for the International World Water Day with great enthusiasm and
zeal. The fortnight long celebrations started in Barabanki with Brindavan Bottlers Limited and
Amrit Bottlers Private Limited in partnership with the World Vision, AFPRO and the local
community, together restoring 20 rainwater harvesting ponds to create sustainable water
resources for this deprived region. The project that was initiated in 2009, was dedicated to the
people of Barabanki, Uttar Pradesh. The renovated ponds were dedicated by Vikas Gothalwal,
District Magistrate – Barabanki in presence of Arun Thomas, Group Executive – Public
Engagement World Vision, L. D. Ladhani, Managing Director, Amrit Bottlers Pvt Ltd, M. D.
Ladhani, Managing Director, Brindavan Bottlers Ltd, Vikas Chawla Vice President, Coca-Cola
India, community members and senior leadership of CocaCola India. The Brindavan Unit in UP
celebrated the World Water Day by organizing a Tree Plantation drive which involved planting
of 20 saplings in the Plant premises by the students of Subash Adarsh Vidalya . A Slogan and
Painting Competition followed by the screening of video on Water Conservation was also
organized for the students. During the plant visit, the chief guest, Mr M.P.Yadav, Manager, Bank
of India presented his views on „Water Conservation‟ and also distributed the prizes to the
winners of the painting competition. The fortnight long celebrations of World Water Day across
the Business Units continues with several projects and awareness programs being conducted to
generate awareness about Water Conservation. These programs were conducted in partnership
with local NGO‟s, community leaders, associates of bottling units and other significant
stakeholders.

2.6: LOCATION
Coca cola comes on the way of faizabad road which comes under national highway 28 Situated
at safedabad road barabanki IT is 18 km from lucknow railway station. Being situated at roadside
it has good transportation facility which helps to transport its finished products to its target
market easily.
2.7: PRODUCTION SCHEDULING
It provides basis for

1. Making good use of manufacturing resources

2. Making customer delivery promises

3. Attaining strategic objectives under sales and operation plans.

2.8: Techniques
Available= inventory position at the end of the week

Starting inventory+ production scheduling – forecast

Before the beginning of every financial year, many manufacturing companies prepare a
production plan. The production plan gives the quantity of goods to be produced for each period
during the financial year as well the demand for each period. The production plan can be
executed weekly, monthly, quarterly or even yearly depending on the products of the company.
Production scheduling is the allocation of available production resources over time to best satisfy
some criteria such as quality, delivery time, demand and supply. An optimum production
schedule is the production schedule, which efficiently allocates resource over time to best satisfy
some set criteria i.e. the plan which allocates the optimum level of production resources
necessary to meet a given demand at a minimum cost. Two sets of parameters are crucial in
production scheduling and management: the technological and price constraints of production
resources and optimization targets, which serve as the key to the most efficient product order
sequencing. Production Scheduling provides a detailed account of production constraints for
various industries and enables you to opt for the most efficient production schedules. Production
Scheduling is successfully applied in the following industries: automotive, machine engineering,
metallurgy, electronics, food and beverage, consumer goods, pharmaceuticals, production of
plastic and packing.

Typical business situations modeled by Production Scheduling:

 Detect bottlenecks and build the production process chain in accordance with the
production speed. Creation of feasible production schedules, that meet goals and take
into account constraints.
 Optimal sequencing of production order performance on technological equipment, based
on constraints and optimization rules
 Schedule work orders
  Calculation of production schedules

 Dynamic rescheduling

 Estimate of production deviations

 Analysis of production capacities‟ loading

 Analysis of orders that are not delivered on time

 What-if scenarios

 Creation of various production strategies

 Manual adjustment and approval of the schedule by schedulers

 Analysis of key performance indicators.

2.9: WASTE MANAGEMENT

At the time CCE (Coca Cola Enterprises) was already recycling 72% of its manufacturing waste

• By 2007 the company increased its recycling level to 94,7%.

• By investing in waste segregation, sorting and recycling equipments, rising staff awareness,
measuring and publishing performance and learning from others in 2009 CCE achieved 99.5%
recycling rate with four of its six manufacturing plants now sending zero-waste to landfill from
manufacturing operations.

The goals now are to raise the amount of recycled content used in our PET bottles to 25%
by 2012. And finally, to recover the equivalent of 100% of its packaging by 2020, reducing the
impact of its packaging and using renewable, reusable and recyclable resources.

2.10: Distribution of coca-cola

At the core of our business in India, as in the rest of the world is our production and distribution
network, which we call the “Coca-Cola system”. Globally, the Coca-Cola system includes our
Company and more than 300 bottling partners. The Coca-Cola Company manufactures and sells
concentrate and beverage bases. Our authorized bottlers combine our concentrate or beverage
bases as the case may be with sweetener (depending on the product), water or carbonated water
to produce finished beverages. These finished beverages are packaged in authorized containers
bearing our trademarks – such as cans, refillable glass bottles, nonrefillable PET bottles and tetra
packs – and are then sold to wholesalers or retailers. In India, additionally, the Company also
sells certain powdered beverage mixes such as Vitingo and Fanta Fun Taste.
 Our beverages reach our ultimate consumers through our customers: the grocers, small retailers,
hypermarkets, restaurants, convenience stores and millions of other businesses that are the final
points of distribution in the Coca-Cola system. What truly defines the Coca-Cola system, and
indeed what makes it unique among businesses, is our ability to create value for our customers
and consumers. In India, the Coca-Cola system comprises of a wholly owned subsidiary of The
Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate
and beverage bases and powdered beverage mixes, a Company owned bottling entity, namely,
Hindustan Coca-Cola Beverages Pvt Ltd; thirteen authorized bottling partners of The Coca-Cola
Company, who are authorized to prepare, package, sell and distribute beverages under certain
specified trademarks of The Coca-Cola Company; and an extensive distribution system
comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells
concentrate and beverage bases to authorized bottlers who are authorized to use these to produce
our portfolio of beverages. These authorized bottlers independently develop local markets and
distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other
businesses. In turn, these customers make our beverages available to consumers across India.

2.11: Marketing channels and Supply Chain Management

Coca Cola has managed their companys marketing and sales strategy within channels. Have you
ever considered the significance of the Coke vending machine to the success and profitability of
the Coca Cola company? This channel is direct to consumer and vending machines often have
little to no competition and no trade or price promotions. Develop solutions for groups of
customers and deploy your benefit throughout the channel as compared to forcing a broad
solution onto multiple customer types. For many food companies, the answer to this single
question can point to sizeable new profits and opportunities for growth via adding new sales
channels and opening new markets with profits and SPEED!

 The Coke Company operates three primary delivery systems for its business channels:
 Bulk delivery for the channels of large Supermarkets, Mass Merchandisers and Club
stores;
 For smaller channels Coke does advanced sale delivery for convenience stores, drug
stores, small supermarkets and on-premise fountain accounts.
 Full service delivery for its full service vending customers.

2.12: Key Channel Listing

 Supermarkets
 Convenience Stores
 Fast Food
 Petroleum Retailers
 Chain Drug Stores
  Hotels/Motels/Resorts
 Mass Merchandisers

2.13: Supply Chain Function

It‟s ensuring customers everywhere stay refreshed. Operating a global business places
tremendous demands on the supply chain. That‟s why at The Coca-Cola Company, you‟ll find
the very best people answering the call everywhere we do business.

We ensure that every link in the chain stretching from bottler to consumer is working together.
We cover every aspect of supply from Procurement and Manufacturing (including Quality,
Environment, Safety & Health), to Engineering and Logistics.

Day to day, this means meeting with our bottlers, with third party suppliers to discuss new
products, sourcing potential third party bottlers or perhaps negotiating a contract for work on a
new product with a specialized bottler. It also involves working closely with marketing and other
functions within the business, aligning their strategic plans with supply chain capabilities.

Kind of roles you can find: Distribution and Logistics, Procurement, Equipment Services and
Customer Service.

2.14: Change in formula

New Coke was the reformulation of Coca-Cola introduced in 1985 by The CocaCola Company
to replace the original formula of its flagship soft drink, Coca-Cola (also calledCoke). New Coke
originally had no separate name of its own, but was simply known The American public's
reaction to the change was negative and the new cola was a major marketing failure. The
subsequent reintroduction of Coke's original formula, re-branded as "Coca-Cola Classic",
resulted in a significant gain in sales, leading to speculation that the introduction of the New
Coke formula was just a marketing ploy.

2.15: Change in coloring

Coca-Cola and Pepsi are changing the way they make the caramel coloring used in their drinks
as a result of a California law that mandates drinks containing a certain level of carcinogens bear
a cancer warning label "Consumers will notice no difference in our products and have no reason
at all for any health concerns," the association said in a statement.
2.16: MANUFACTURING PROCESS

FIGURE: MANUFACTURING PROCESS

2.16.1: The manufacturing of the products of Coca-Cola involves the following steps:

Water is received from the River Cauvery and it passes through the water treatment plant, further
passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water.

In the syrup room, the concentrate received from another bottling plant situated at Pune, is
blended with the sugar syrup

Once both the water and the final syrup are ready, they are both mixed together and sent to the
carbonator section where Carbon Dioxide is added to the mixture to form the final product.

On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and
washed for the purpose of filling in the final product in it. This step does not take place in the
PET bottle line as the bottles once used are disposed.

The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of PET
bottles), labeled and cased in order to be sent into the warehouse for distribution.
2.17: DISTRIBUTION PROCESS
2.17.1: DISTRIBUTION ROUTES
The various routes formulated by BBPL for distribution of products are as follows:

 Key Accounts: The customers in this category collectively contribute a large chunk of
the total sales of the Company. It basically consists of organizations that buy large
quantities of a product in one single transaction. The Company provides goods to these
customers on credit, payments being made by them after a certain period of time i.e.
either a month of half a month. Examples: Clubs, fine dine restaurants, hotels, Corporate
houses etc.
 Future Consumption: This route consists of outlets of Coca-Cola products, wherein a
considerable amount of stock is kept in order to use for future consumption. The stock
does not exhaust within a day or two, instead as and when required stocks are stacked up
by them so as to avoid shortage or non-availability of the product. Examples:
Departmental stores, Super markets etc.
 Immediate Consumption: The outlets in this route are those which require stocks on a
daily basis. The stocks of products in these outlets are not stored for future use instead,
are exhausted on the same day and might run a little into the next day i.e. the products are
consumed at a fast pace. Examples: Small sized bars and restaurants, educational
institutions etc.
 General: Under this route, all the outlets that come in a particular area or an area along
with its neighboring areas are catered to. The consumption period is not taken into
consideration in this particular route.

2.17.2: DISTRIBUTION SYSTEM

 Direct distribution: In direct distribution, the bottling unit or the bottler partner has
direct control over the activities of sales, delivery, and merchandising and local account
management at the store level.
 Indirect distribution: In indirect distribution, an organization which is not part of the
Coca-Cola system has control on one or more of the distribution elements (Sales,
delivery, merchandising and local account management)
 Merchandising: Merchandising means communication with the consumer at the point of
purchase to convey product benefit, value and Quality. Sales people and delivery
personnel both have this responsibility. In certain locations special teams who go into
business locations to specifically merchandise our products.
2.17.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION
PROCESS
The Distribution process mainly consists of three departments:

 Distribution Department: It appoints distributors and establishes a distribution network,

processes approved sale orders and prepares invoices, arranges logistics and ship
products, co-ordinates with distributors for collections and monitors distribution stocks
and their set-up.
 Finance Department: It checks credit limits and approves sales orders in compliance
with the credit policy followed by the firm, records collections from distributors,
periodically reconciles outstanding balances from distributors, obtains balance
confirmation from distributors and follows up outstanding balances.
 Shipping or Warehousing Department: It dispatches goods as per approved by order,
ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out
area and updates warehouse stock records in a timely manner.

2.18: SWOT ANALYSIS

2.18.1: STRENGTHS
DISTRIBUTION NETWORK: The Company has a strong and reliable distribution
network. The network is formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction. It has a distribution network consisting of a
number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet
includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that
can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.
STRONG BRANDS: The products produced and marketed by the Company have a
strong brand image. People all around the world recognize the brands marketed by the Company.
Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of
the CocaCola Company as a whole. The red and white Coca-Cola is one of the very few things
that are recognized by people all over the world. Coca-Cola has been named the world's top
brand for a fourth consecutive year in a survey by consultancy Interbrand. It was estimated that
the CocaCola brand was worth $70.45billion.

LOW COST OF OPERATIONS: The production, marketing and distribution

systems are very efficient due to forward planning and maintenance of consistency of operations
which minimizes wastage of both time and resources leads to lowering of costs.

Thums-Up & Limca which are the product of Coke are having a reputation of "Swadeshi Brand"
in the consumers mind because of its tie-up with the Indian company Parle Exports.
Coke is having more number of bottling plants in compare to Pepsi that is why it has a strong
distribution network.

Coke is having four Cola brands i.e. Coca Cola & Thums-up Limca & Sprite covers more target
customers. Those consumers who prefer hard Cola drink choose Thums-Up & Sprite & those
who wants soft drink prefer Coca-Cola & Limca.

The packaging of Coca-Cola is in accordance to the taste of the rural people because of its red
color logo.

The no. of specific outlets for Coke is more compare to the other competitive brands. Thus larger
markets share in the area covered by Coke. About 70 to 80% of consumers prefer the taste of the
drinks of Coke Co.

2.18.2: WEAKNESSES
LOW EXPORT LEVELS: The brands produced by the company are brands produced world
wide thereby making the export levels very low. In India, there exists a major controversy
concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In
2003, the Centre for Science and Environment (CSE), a non-governmental organization in New
Delhi, said aerated waters produced by soft drinks manufacturers in India, including
multinational giants PepsiCo and Coca-Cola, contained toxins including linden, DDT, malathion
and 48 chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune
system. Therefore, people abroad, are apprehensive about Coca-Cola products from India.

SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE

ECONOMIES OF SCALE: The Company‟s operations are carried out on a small scale and due
to Government restrictions and „redtapism‟, the Company finds it very difficult to invest in
technological advancements and achieve economies of scale.

 Less personal contacts with retailers.

 Service is not good.
 Company officials do not visits outlets regularly.
 Less advertisements Channels.
 Bad and delay in claim settlement.
 No proper maintenance of asset as like visi-coolers, dealer board, glow sign, etc.
 Less availability of dealer board, glow signboard, painting etc.

2.18.3: OPPORTUNITIES
LARGE DOMESTIC MARKETS: The domestic market for the products of the
Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims
a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market.
Other products account for 16 per cent market share, chiefly led by Limca. The company
appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover one
lakh outlets for the coming summer season and this also covered 3,500 new villages. In
Lucknow, Coca-Cola amounts for 74% of the beverage market.

EXPORT POTENTIAL: The Company can come up with new products which are
not manufactured abroad, like Maaza etc and export them to foreign nations. It can come up with
strategies to eliminate apprehension from the minds of the people towards the Coke products
produced in India so that there will be a considerable amount of exports and it is yet another
opportunity to broaden future prospects and cater to the global markets rather than just domestic
market.

HIGHER INCOME AMONG PEOPLE: Development of India as a whole has

lead to an increase in the per capita income thereby causing an increase in disposable income.
Unlike olden times, people now have the power of buying goods of their choice without having
to worry much about the flow of their income. The beverage industry can take advantage of such
a situation and enhance their sales.

 High growth rate for fruit drink market.

 Gorakhpur city has a great population of youths in U.P.
 Gorakhpur city has good market share of Slice in India.
 Targeting the upper middle class for home take segments.
 Coke must try to approach those outlets that are selling only other competitive brands.
 Seasonal sellers generally do not have proper cooling system. If they get a small fridge
then they can sell more.
 If Coke covers the schools, office canteens, hotels & bars then it can get a regular
customer.

2.18.4: THREATS
IMPORTS: As India is developing at a fast pace, the per capita income has increased over
the years and a majority of the people are educated, the export levels have gone high. People
understand trade to a large extent and the demand for foreign goods has increased over the years.
If consumers shift onto imported beverages rather than have beverages manufactured within the
country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the
sales of the Company.

TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a

variety of regulations at each stage on the consequence from production to consumption. When a
license is issued, the production capacity is mentioned on the license and every time the
production capacity needs to be increased, the license poses a problem. Renewing or updating a
license every now and then is difficult. Therefore, this can limit the growth of the Company and
pose problems.

SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not
without its problems: Low per capita disposable incomes that is half the urban disposable
income; large number of daily wage earners, acute dependence on the vagaries of the monsoon;
seasonal consumption linked to harvests and festivals and special occasions; poor roads; power
problems; and inaccessibility to conventional advertising media. All these problems might lead
to a slowdown in the demand for the company‟s products.

 High growth of competitor's products.

 Better facilities provided by the competitor to their distribution this might lead to switch
over to slice distribution towards competitors.
 Different effective promotion schemes of competitors.
 The main threat to coke is from beverages like tea, coffee & fruit, juices.
 It is very tough for Coke to get more market share since other competitive brands is
already having a very good position in the mind set of consumer.
 A larger number of retailers are not having any type of Sales Generating Assets from
Coke that results in lesser sales.

2.19: COMPETITORS
The competitors to the products of the company mainly lie in the non-alcoholic beverage
industry consisting of juices and soft drinks.

The key competitors in the industry are as follows:

 PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company
never ends for the World's # 2, carbonated soft-drink maker. The company's soft drinks
include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage;
PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water.
PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola
hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the
rest belongs to Pepsi.
 Nestlé: Nestle does not give that tough a competition to Coca-Cola as it mainly deals
with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has
been introduced into the market by Nestle provides a considerable amount of competition
to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it
is a thirst quencher and it is healthier when compared to fizz drinks. The flavored milk
products also have become substitutes to the products of the company due to growing
health awareness among people.
  Dabur: Dabur in India, is one of the most trusted brands as it has been operating ever
since times and people have laid all their trust in the Company and the products of the
Company. Apart from food products, Dabur has introduced into the market Real Juice
which is packaged fresh fruit juice. These products give a strong competition to Maaza
and the latest product Minute Maid Pulpy Orange.

2.20: Marketing mix:

2.20.1 Product
The Coca-Cola Company's products include beverage concentrates and syrups, with the main
product being finished beverages. The business has over 400 brands of beverages around the
world with the main ones being Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and
PowerAde. The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 litres,
1.25 litres, 600mL and 300mL. These are also available in aluminium cans of 375mL. Coca-Cola
is the most well known trademark, recognised by 94 per cent of the world's population. The
business is very successful and holds a very good reputation.

Marketing strategies for product

The Coca-Cola Company uses marketing strategies to differentiate its product from its
competitors to gain a competitive advantage. These are listed in the table below.

Marketing strategy
Extension/product differentiation In 2002, the Coca-Cola Company extended the products of
Coke and developed the new products Coke with lemon and Vanilla Coke.

This extension: Responded to consumer demands.· Generated sales and profit. Innovation In
2001, Coca-Cola had innovated and developed the introduction of purchasing the company's
products from vending machines via SMS messaging. In 2002, the company innovated and came
up with a new packaging idea, the Fridge Pack. The Fridge Pack consists of cans packed 2-by-6.
This innovation has: Increased consumer awareness and preference.· Increased rate of
consumption and profitability.

2.20.2: Price
The prices of Coca-Cola's products vary according to the brand and the size. The prices of the
main products are shown below.

Product Size Prices (approx. not on sale prices) Coke, Fanta, Limca, Sprite Coca-Cola soft drinks
PowerAde 2L bottle 1.25L bottle 600mL bottle 300mL bottle 375 x 30 cans 375 x 18 cans
---185rs100rs,155rs -170rs,95rs,1330rs,970rs,210rs.
Pricing Methods/Pricing strategies The Coca-Cola Company's products are sold in retail stores,
convenient stores, petrol stations etc. The pricing methods/strategies are set by those the
company sells to. Petrol stations and convenient stores usually sell Coca-Cola products at a fixed
price. However, retail outlet uses pricing methods and pricing strategies when selling Coca-Cola
products.

Pricing methods
Competition-based pricing Coca-Cola products are usually priced below, above or equal to its
competitors' prices.For example, during Easter sale periods (Coca-Cola vs. Pepsi):Coca-Cola soft
drinks 2L – 125rsPepsi soft drinks 2L – 140rsCoca-Cola soft drinks 375 x 18 - 740Pepsi soft
drinks 375 x 24 – 740

Discount price Coca-Cola products are often marked down during sale periods and special
occasions. This will: Generate sales· Increase profits

Pricing strategies
Meet-the-competition pricing The Coca-Cola products pricing are set around the same level as
its competitors. Psychological pricing Most of the Coca-Cola products use this method of
pricing. For example, for a pack of 375mL x 18 cans of Coca-Cola soft drinks it is priced at
740rs instead of 750rs.This pricing strategy makes consumers perceive the products to be
cheaper.

2.20.3: Promotional strategies

Advertising The Coca-Cola Company uses advertising as its main source of increasing consumer
awareness. It mainly uses the television. There are many television advertisements on Coca-Cola
products. This source allows the company's products to reach a large audience. The latest
television advertisement for Coca-Cola soft drinks was the “haan haan mai crazy hoon”
advertisement. The company also uses the radio as another source of advertisement. This is a
cheaper source of approach compared to the television. Recently, the company benefited from its
involvement in the world's celebrated games such as the Olympics and the FIFA World Cup.
Where millions were watching these games, the business had substantial advertising and
promotions of the company's brands. The cost of advertising over the past 3 years is shown in
Personal selling Every year, The Coca-Cola Company has a highly trained sales team, which acts
as a representative of the company to the retailers. This strategy helps to maintain service and
product loyalty. It has been demonstrated by the business to be highly effective.
2.20.4: Place of distribution
The Coca-Cola Company sells its products to bottling and canning operations, distributors,
fountain wholesalers and some fountain retailers. These then distributes them to retail outlets,
milk bar and corner stores, restaurants. Wholesalers/distributors Retail/corner stores Restaurants,
Consumers Place strategies Indirect distribution The Coca-Cola Company uses intermediaries in
its distribution. That is, the company does not sell its products directly to its consumers.
Intensive distribution The Coca-Cola Company uses the intensive distribution strategy. The
business's products are sold in almost every outlet including: retail outlets small shops
restaurants petrol stations newsagents schools sports and entertainment venues from vending
machines.