cocacola in india

1. THE RED BECOMING MORE
THICKER
Presented by:
DAIPAYAN DUTTA

2. COCA COLA ENTERS INDIA
• Coca Cola entered the Indian market in 26th October,1993 after
a gap of 16 years.
• It acquired ownership in the Parle Group which gave the
Company instant ownership to popular brands :Thumps Up,
Goldspot, Limca, Maaza.
• The deal not only gave manufacturing, bottling, and
distribution assets to coke but also strong consumer
preference.
• Jayadev Raja, the flamboyant management expert , was made
the first CEO of Coca cola in India.
• 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.

3. WHAT WENT WRONG
• The style of professional management didn’t matched with
the local bottlers as Coke was not able to capitalise the popularity
of Thumps Up.
• The company changed its CEO four times during the span of
7years.
• The slow pace of work in erstwhile Parle group proved to be
• Many bottling plants were small in size and were using obsolete
technology and used low grade trucks for the transportation
purpose by the bottlers.
• Raja was replaced by Jack Nicholas in 1995 and he tried to
acquire equity stakes in the Bottling plants.
• The plan back fired as the plants already running on low profits
decided to join Pepsi Inc

4. • Coke failed to capitalise on being the official drink of
World Cup 1996 as Pepsi brought the tag ”Nothing
Official About It”.
• Nicholas was replaced by Donald short, who invested
heavily in acquiring 38 bottlers for $700 million .
• In next few months coke tripled its ad spending and
moved to decentralize the style of working.
• Each bottling plant was expected to
meet predetermined profit, market shares and sales
volumes.
• The approach didn’t bring the expected results and
Coke brought in Alexander Von Behr.

5. • Alexander Von Behr reitered coke’s commitment to
decentralisation and responsiveness.
• Coca Cola India was divided into six regions each under a
business head.
• This move brought resentment among employees
resulting in many of them leaving the Company.
• But undeterred Coke continued its reforms by Cost cutting
in the form of shifting its executives from Farm houses to
smaller houses and renegotiating leasing agreements in
the Gurgaon Plant.
• Discount rates were standardised and information system
upgraded.
• Coke had great hopes in India as the country with a
huge population and the per capita consumption just
4 bottles a year.

6. Why did Coke change its CEOs so
often?
• The demand of the organisation changed soon after
sometime and the current CEO failed at achieving the
revenue targets or not giving his full commitment to the work
or did not show his interest in the organisation
• CEOs were doing rapid changes to the organisation but they
did not look for the employees interest which effected the
workers output and resulted in loss of productivity
• Nicholas after entering the organisation gave ultimatum to
the bottlers either to sell their firms ,resulting in bottling
plants changing their loyalty to Pepsi.
• Coca Cola Company tried to get results immediately but was
not possible due to the complexity of problems.

7. What other changes might be necessary to
make Coke’s operation profitable in India
• To help the bottlers overcome their financial problems and
increase profit margins
• Improve relations with the bottlers to so that able to do their
work with full commitment and provide better services to the
company.
• Launch more products in different categories to increase
customer base.
• Promote established brands like Thumpsup and Limca to gain
more market share compared to Pepsi.
• Motivate their employees and bring them in sync with Company
goals

8. Do you think Coke should continue to stay
in India? Why?
• Coke had great hopes in India as the country has
a huge population and the per capita
consumption was just 4 bottles a year.
•

9. • In India, the Coca-Cola system comprises of a wholly owned
subsidiary of The Coca-Cola Company namely Coca-Cola India
Pvt Ltd
• Company-owned bottling entity, namely, Hindustan Coca-Cola
Beverages Pvt Ltd
• The Coca-Cola Company has invested nearly USD 1.1 billion in
its operations in India since its re-entry back into India in
1992.
• Coca-Cola system in India directly employs over 25,000 people
and indirectly about 1,50,000 people in related industries
through its vast procurement, supply and distribution system.

10. COCA COLA PRODUCTS IN INDIA