presentation on marketing management of coca-cola

1. Jai ma saraswati
Presentation of
Marketing management
marketing management of coca cola
Submitted to submitted by
Dr.sarika Yadav 1 vimal kumar(114168)
2 Vijay kumar Yadav(114165)
3 vineet kumar (114170)
4 vinit dahiya(114171)
5 sunil chawari(114156)
6 Saurabh kumar(114132)

2. Out line
 History of coca cola
 Business Marketing
 Segmenting and Targeting Markets
 Developing and Managing a Product
 Integrated Marketing Communication
 Sales and Personal Selling
 Advertising and Public Relations
 Marketing mix
 Swot analysis

3. History of coca cola in
INDIA
• Coca-Cola came to India in the year 1956.
• Indian foreign exchange act was implemented in the year 1974 during Indra Gandhi time. The foreign
exchange act stated that foreign companies selling consumer goods must invest 40% of its equity stake in
India in its Indian associates. Coca-Cola agreed with investing 40% foreign equity but stated that they
would still hold full power in technical and administrative units with no local participation allowed.
• This demand was against the foreign exchange act. The government instructed Coca-Cola to either write
up a new plan or to leave the country.
• The Janata Party came into the power in 1977 and stressed that Coca-Cola should either accept the
foreign exchange act or leave the country. Coke India left that year
• In 1993 Coca-Cola re-entered after government approval, due to the new liberalization policies that were
coming to India. The foreign exchange act which had once prevented companies from keeping too much
equity had now been completely modified.
• Before Coke re-entered India, more than 50 Indian soft-drink brands had been developed and 200
production plants set up.

4. Business Marketing
 Coca-Cola Company works together with more than 300 bottling partners
globally and operates the most extensive beverage distribution system in the
world.
 Electronic commerce had become a preferred method of doing business for
the grocery industry and therefore the company developed a high volume site
for Business to Business e-commerce (B2B).
 Internet has made it possible for Coca-Cola Company to build a strong
relationship with its bottling partners, to increase collaboration and
efficiency, and to better understand the costumers' needs.

5. Business Marketing
Coca Cola Company first started its bottle agreement on 1899 and today it has 300 bottling
partners worldwide
Here are few examples from Coca Cola's alliances for business marketing
1.Apple and Coca cola made iTunes alliances on 2006; Coca-Cola used this initiative to promote
their calorie-free Coke Zero brand along with iTunes.
2.The Walt Disney Company has a 47 years alliance with Coca-Cola Company. On September 2002,
DASANI water bottles were featured at the Walt Disney’s parks and resorts. DASANI were also
served on the Walt Disney cruise lines, and became the sponsor of the Walt Disney’s World
Marathon.

6. Business Marketing
 McDonald's and Coca Cola have a
strong alliance based on trust for
more than 60 years, Coca Cola
products are being sold in 31,000
restaurants over 100 countries.
. Nestlé Company, Switzerland, and Coca Cola Company have a joint venture
since 1991. The companies took advantage of Nestle's well-known brands of
coffee, tea and chocolate beverages and Coke distribution system

7. Segmenting and Targeting Markets
Geographic segmentation
Coca Cola has drinks that targets different age groups, ethnic groups, sexes,
lifestyles, etc. Examples:
1.Oasis- Juice made for the younger working adults, between the ages of 20-
30. The product is available in different flavors (berry, lemon, and orange
tangerine). It’s mostly popular in Britain and Ireland.
2.Coca Cola Zero- targets teens that don't want calories but want the taste.

8. Segmenting and Targeting Markets
3.Diet Coca Cola- targets adults, between 30-50 who are health conscious but
want the taste.
4.Powerade- sport drink, targets athletes between 13-27 ages.
5.Minute Maide- targets kids and adults from 1 year to 10 and 40 plus. It’s
convenience to carry. It targets parents that want their children to drink
healthier drinks.

9. Segmenting and Targeting Markets
 Demographic segmentation:
 Age- 15-25 years old and 40 plus.
 Gender- targets both genders with wide variety drinks.
 Income- segments different income level. for example, by packaging: for low
level income the company is selling returnable glass bottle; for high level
income, the company is selling coke in tins.

10. Segmenting and Targeting Markets
 Psychographics segmentation
 People who are brand conscious will not drink beverages of less known
brands. They will try to show their status by drinking Coca-Cola.
 The level of education is another factor that the company is paying attention
to. In an high percentage education, the company can use advertisements to
convey the company massage.
 Because Coca Cola is a recognized world brand, people will drink it without
hesitate.

11. Segmenting and Targeting Markets
 Climate-
 Coca Cola’s consumption in the summer is 60% than 40% in the winter;
therefore, the company's sales are higher in the summer. It also focuses in
hot area in the world

12. Developing and Managing a Product
 Coca Cola is a worldwide, ready to drink, non - alcohol, soft drink company.
 The company evolved during 125 years from one product, coca-cola, to more
than 500 brands in 2011, and expanded from only one city to availability in
more than 200 countries around the world.
 New products are very important to keep growth and to increase revenues
and profits

13. Developing and Managing a Product
 Example of types of new products innovations
 1“New product line” - Sprite launches Sprite Tea, new innovative Tea
flavorous sparkling beverage in China, the company used massive consumer
testing to fine-tune the taste, the right amount of tea essence and
percentage of bubbles.
 “Addition to existing product line” - New 1.25 Liter Coca Cola package
introduce as part of the company’s 125th anniversary celebration.
 3“Improvement or revision of existing product”- DASANI and Odwalla
available in plant bottle packaging nation wide.

14. Developing and Managing a Product
Another example for "New- Product Development Process", the coffee drink
innovation which introduce by Victor Behrman, head of the group’s competence
center for Europe, Eurasia, and Africa,
1)Idea- the consumption of coffee increasing around the world, home and
outside due to this fact Coca Cola Company decided to enter this market
2)Building analysis - the company identify the competitors in the past and
present in the past and present, the company also makes a research on similar
products throughout the world and find a niche on the global market. Than the
company partnership with the Italian coffee producer Illy.

15. Developing and Managing a Product
3)Development- the key product is Illy ready-to-drink coffee, the company
launched on each market the drink with variant coffee power, in the beginning
without preservatives and without milk and after in different variations until it
got to the maximize satisfaction.
4)Preparation for the introducing of the product - creating legal entity for the
partnership, development of supply, packaging, first commercial production
under supervision.
5)Commercialization - ensuring the great exposure, focus on availability in retail
store, penetration of high quality stores.

16. Integrated Marketing Communication
 Coca-Cola is using all elements of promotion,
1. Advertisement- Coca-Cola advertise in traditional media such as: TV, news
papers, magazines, billboards, bus stops, and etc. the company is also using
the new methods such as websites and blogs to supply more information
about the company and its products.

17. Integrated Marketing Communication
 Public relation-
 The company has its own website where consumers can view press releases,
executive speeches, and statements which addresses law-suits, rumors,
stories, and etc.
 The latest example can be also the World Wildlife Fund, Coca-Cola campaign
for the Polar Bear’s home, the company ties in the branded image of “Coke
Polar Bear” with the concern for the environment.
 The company started to manufacture more than 1.4 billion white coke cans,
the company will also committed to raise 3 million for the fund between
November 1- March 15, 2012. The company will donate 2 million and will raise
1 million from public donation, by texting the package code to 357357 and $1
will donate to the fund.

18. Integrated Marketing Communication
3.Sales promotion- In "My Coke Reward", you can find tons of coupons, rewards,
gifts, free vacations, and etc.
4. Personal selling- Cola-Cola has highly trained sales team, the company primary
used personal selling for business to business sales. The company sells its
products to retail stores using intermediaries, it can also be called Interpersonal
communication, direct- face to face communication. Coca- Cola also sells its
products to restaurants, part of the restaurants sell only Coca-Cola Coke.

19. Integrated Marketing Communication
AIDA concept, which means attention, interest, desire, and action also takes
place in Coca-Cola promotion.
When Coca- Cola introduce new product the company is using aggressive sales:
on TV, bus stops, magazines, and etc to gain attention. Coca-Cola uses ads with
information including ingredients and materials to provoke interests, like diet
coke for low- calories’ consumers or 2liter bottle to save money or for
convenience.
To provoke desire, the company also explains in ads or in its website how the
product will satisfy the potential consumer,
 for example, buy 2liter bottle to save money and if you drinks a lot or buy
coke zero if you want to keep your shape. And than Coca-Cola continually
advertise aggressively everywhere and explain the benefits of the new product,
it also offer concessions like when introducing the new 2liter bottle in Republic
of Ireland, one single 2liter bottle in half price, so the potential costumer will
take an action and buy it.

20. Sales and Personal Selling
 Coca- Cola adjust prices, advertisements, sales promotion programs, products
innovation, new packages, new vending and dispensing equipment, and brand
and trademark development and protection to sustain and lead among
the competitors.
 In 1999 the Coca-Cola and diet Coke 2litre bottle were introduce in the
Republic of Ireland and Northern Ireland. Part of the marketing plan was price
promotion, single 2litre bottle in half price (99p), and national shopping mall
sampling

21. Sales and Personal Selling
 In Israel during the holiday, usually Sep-Oct, Coca-Cola promotes 6 or 3
bottles packages in lower prices, the packages include blessings for the
holidays.
 In addition, every year the Coca-Cola Company produce huge event called
"Coca-Cola village" for young people, its 2 days event with music and food
that many singers, actors and famous people perform

22. Sales and Personal Selling
 there are promotions as:
* Buy two 2litre bottles get 1litre bottle free.
* New media in which a special code is at the back of the cap and you need
to text to code to a
specific number and there will be a lucky draw out of it.
* Vouchers and coupons to get free bottles.
* Buy Dominos Pizza and get 500ml bottle of coke.

23. Marketing mix of Coca Cola
 The marketing mix of Coca cola has been changing over time with more and more products
being added such that today it has 3300 products. So what is the marketing mix of Coca cola?
 Product:-
 The company has the widest portfolio in beverage industry comprising of 3300 products.
Beverages are divided into diet category, 100% fruit juices, fruit drinks, water, energy drinks,
tea and coffee etc.
 As per Nielson’s data, Coca cola is the No.1 brand in sparkling beverages, juice, and retail
packaged water in 2010.
 Coca cola has its market presence around 200 countries. Coca cola brands in India are Fanta,
Maaza, Limca, sprite, Thums up, Minute Maid, Nimbu fresh, Nested iced tea etc.

24. Price
 Due to the availability of wide range products the pricing is done according to
the market and geographic segment.
 Each sub-brand of coca cola has different pricing strategy.
 Their pricing strategy is based on the competitors pricing, Pepsi is the direct
competitor to coke. Beverage market is said to be a oligopoly market (few
sellers and large buyers), hence they form into cartel contract to ensure a
mutual balance in pricing between the sellers

25. Place
 Coca cola is the world’s most favorite brand and is available all over the
world. The distribution system of coca cola follows the FMCG distribution
pattern.
 The effective distribution network of coke has almost eroded the small and
middle level players in the market. In India they have captured even the rural
market by extensive distribution and have eroded the market share of
Bovonto, Kalimark etc.

26. Promotion
 Coca cola adopts various advertising and promotional strategies to create an
increased demand in the market by associating with life style and behaviour
and mainly targeting value based advertising.
 You are more likely to see a coke ad individualised for a particular festival or
in with a general positive message.
 Coca cola uses CSR as its marketing tool to gain emotional benefits in
consumers mind. The current promotions through CSR include “Support my
school” campaign with NDTV.

27. Promotion
 It has many brand ambassadors like Shahrukh khan, Hrithik Roshan, South
Indian Actor Vijay and Trisha , Ghambir, Aamir khan etc and has signed
contract recently with Imran khan. It allows price discounts and allowances to
distributors and retailers in order to push more products into the market. It
employs both push strategy through promotions and pull strategy through
advertisements and campaigns.

28. SWOT of Coca Cola
 Strengths
 Weaknesses
 Opportunities
 Threats

29. Strengths
 Brand Equity – Interbrand in 2011 awarded Coca cola with the highest brand
equity award
 Company valuation – One of the most valuable companies in the world, Coca
cola is valued around 79.2 billion dollars
 Vast global presence – Coca cola is present in 200 countries across the world.
Chances are, any country that you go to, you will find coca cola present in
that market.
 Largest market share – There are only 2 Big competitors in the beverage
segment – Pepsi and Coca cola

30. Weaknesses
 Competition with Pepsi – Pepsi is a thorn in the flesh for Coca cola. Coca cola
would have been the clear market leader had it not been for Pepsi
 Product Diversification is low – Where Pepsi has made a smart move and
diversified into the snacks segment with products like Lays and Kurkure Coca
cola is missing from that segment
 Absence in health beverages – If you watch the news, you would know that
obesity is a major problem affecting people nowadays.
 water management At the same time, people have also blamed Coca cola
for mixing pesticides in the water to clear contaminants. Thus water
management needs to be better for Coca cola.

31. Opportunities:-
 Diversification – Diversification in the health and food business will improve
the offerings of Coca cola to their customers.
 Developing nations – Although developed nations have a high presence of
Coca cola, these countries are slowly moving towards healthy beverages
 Packaged drinking water – With hygiene becoming a major factor in the
consumption of water, Packaged drinking water has found its way into
peoples mind
 Supply chain improvement – Supply chain can be a major cost sink hole with
the transportation costs always rising. Coca cola’s complete business is based
on transportation and distribution.

32. Threats
 Raw material sourcing – Water is the only threat to Coca cola. The weakness
of Coca cola was the suspected use of pesticides or vast consumption of
water.
 However, the threat here is that water scarcity is on the rise. With the
climate changing,
 Indirect competitors – Coffee chains like Starbucks, Café coffee day, Costa
coffee are on the rise. These chains offer a healthy competition to Coca colas
carbonated drinks.

33. Present condition of coca cola
 As of now, Coca-Cola has been doing as well as it ever has been. In 2006,
Coca-Cola and Coca-Cola Enterprises were ranked No. 1 and No. 2 on Fortune
500's list of best beverage companies.
 It has been ranked as one of the top companies to work for. As of 2000, it
was the top-ranked soda in the United States.