Establishment - 29 January 1892, Atlanta, Georgia,

United States
Owner - James Quincey

• Coca Cola established 29 January 1892, Atlanta, Georgia, United States.

• Coca cola is a carbonated soft drink produced by the coca cola company of Atlanta, Georgia.

• The coca cola company is an American multinational beverage corporation and manufacturer, retailer and
marketer of non-alcoholic beverage concentrates and syrups.

• Coca cola company offers nearly 400 brands in over 200 countries oe territories, which shows its
recognition.

• The Coca-Cola Company, American corporation founded in 1892 and today engaged primarily in the
manufacture and sale of syrup and concentrate for Coca-Cola, a sweetened carbonated beverage that is a
cultural institution in the United States and a global symbol of American tastes.

• Company profile origin the first coca cola recipe was invented is Covington, Georgia, by JHON
PEMBERTON originally as a coca wine called “Pemberton’s French wine coca” in 1885.

• It incorporated in 1892 as Coca Cola company.

COCA COLA IN NEPAL

 BY Bottlers Nepal Limited (1979)

 66% Market Share in Nepal (reduced from 80%) due to aggressive marketing of competitors.

 The urban consumption is greater by two third of consumption in comparison to rural Nepal.

Mission: Building a community driven, customer focused, profitable, sustainable and socially responsible business
in Nepal.

Vision: Making every Nepali’s first choice of refreshment available within easy reach.
Brand Tagline: JA AUXA MAJA LE PACHAUNXA

Branding: Celebrity Endorsement, Funding and Sponsorship

RURAL NEPAL

• The largest campaigns to Clean our Pride, Mt Everest

• The Company works on various locally relevant initiations on Water Replenishment/Conservation,

Packaging Waste Recovery, Women Empowerment, Youth Empowerment and Energy Usage Reduction

URBAN NEPAL

• Coke and MOMO- The perfect Jodi

• Diusai Jhap Jhap, Coke Le Up

Different types of Stakeholders

• Primary stakeholders – Employees, Customers, Consumer, Retailers and Logistic partners, Competitors,
Financial stakeholders and Investors,.

• Secondary stakeholders – Bottling partners, Union interest groups, Industry partners, Government,
Suppliers and vendors.

• Tertiary stakeholders – NGO, Health professionals, Contractors and Media.

Power/Dynamism Matrix

Power/Dynamism Low
 Low Bottling Partners, NGO, Communities

High Government, Investors, Union and Interest Groups, Financial

Stakeholders

Objectives of the Strategy

• To increase the sales of Coca-Cola at the Rural part of India and Nepal.

Problem Tree

               

  Competitors Gaining competitive Advantages Low Retaintion

  Lack of Quality

  lays off Employees Low Productivity Less Profit to Company

  LACK OF SALES

  Electricity Issues Lack of transportation Low Income Group

  Adverts and other promotion issues Retailers and Distributor Issues

  Workload and less motivation to sales personnel Health and Institution negative feedback

  Consumer shift to other drinks

               

Objective Tree
                 

  Innovative packaging of the product Increased in information of the nutrient value

  Improved market access Increased Supply Retain coolness of product

  Salesperson retention Higher Productivity Gain competitive advantage

  Increased in Sales

  Focuses on Healthy Drinks Focuses on Energy/Sports Drinks Persuasiv

  Alternate solution for refrigerating Increased in retailers/ outlet

  Local Empowerment as a sales personnel

                 

SWOT ANALYSIS

  Strengths (S) Weakness (W)

  1) Innovative Packaging 1) Contains High Calories (sugar factor

  2) Financial Stakeholders 2)Outlets/ Retailers

  3) Botteling Partners 3) Cut Throat Competition

  4) Marketing Strategies 4) Limited number of new customer

  5) Employees 5) Product Diversification

  6) Dominant Market Share

  7) Relationship with Retailers

  8) Brand Value  

  Opportunities (O) Threats (T)

  1) Increased Supply Chain Management 1) Electricity

  2) Increased Industrial partners 2) Medical and Health Personnel

  3) Expansion of productline to healthy drinks 3) Unions and Interest Group

  4) Alternative solution for refrigerating 4) Low Income Group

  5) CSR for enhancing Goodwill 5) Water Management Issues

               

POTER’S FIVE FORCE MODEL

1. Threat of New Entrants (LOW)

1. Threat of New Entrants (LOW)

2. Bargaining Power of Buyers (HIGH)

S. No. Determinates

1 Bargaining Power of Customer ( bargaining power of customers is low because they only buy small quantities of
product)

2 Market Segment (wide availability of other soft drinks ranges from soft to hard are available in the market)

3 Level of Differentiation (there are similar products of competitors like Pepsi. Co, Pran and other local manufacture

4 Information availability to customer (customer knows everything about products and can compare too)

5 Sensitive to price changes (the customers especially from rural are more price sensitive)

6 Switching cost ( shift to other drinks couldn’t requires lot expenses)

7 Bargaining power of retailer (it is high because the retailer buys in large amount from the company.)

8 Brand Value (coca cola has moderately good brand value, THANDA MATLAB COCA COLA!!!)

3. Bargaining Power of Suppliers (LOW)

S. No. Determinates LO
 1 Control over price shift of raw materials (the suppliers lacks power to change in price of raw materials)

2 Number of Suppliers (the number of raw materials suppliers are less )

3 Level of Differentiation (the suppliers are supplying particular raw materials like glass bottle, product tag
and so on)

4 Forward Integration of Suppliers ( there is chances of suppliers involving on manufacturing)

5 Backward Integration of Industrial Partner (there is higher chances that industrial partner could merge with
competitors)

6 Switching cost (it is expensive for suppliers to switch to their business)

7 Competition of suppliers( there are specific suppliers which leads to moderate competition)

4. Threat of Substitute (HIGH)

S. No. Determinates LO

1 Availability of Substitute product (there are high availability of substitute product like fruit drinks, energy
drinks)

2 Demand side of market (the demand of carbonated drinks and other freeze drinks mainly in summer is high)

3 Limitation to cold Beverage (the competitors like Pepsi Co has wide diversification in there product range
but coke has less)

4 Availability of local drinks (the locally produced drinks like fruit drink, juices are also available at rural part
of country)
 5 Market penetration (the entry of new product in new market or at the existing market is highly possible as the
demand is high)

6 Price relative of Substitute (the price of the substitute product is comparatively similar and sometime low
like Real Juice, mineral water)

7 Quality of Substitute (the quality of coke with compare to other substitute good is less in different)

5. Competitive Rivalry (HIGH)

S. No. Determinates LO

1 Competition in soft drinks (the competitors in soft drinks are comparatively greater ex. PepsiCo, Parle,
Nestle etc)

2 Cost Differentiation (the cost per unit of soft as well as freeze have very low differences. Coke of 250ml and
Pepsi of 250 ml cost Rs.20 IC.)

3 Taste Differentiation (the taste of coke and pepsi are similar so as Kinley and Bislery)

4 Price as an influential factor (due to less different in cost per bottle the pricing influence is low)

5 Rivalry on Industrial Growth (if we see the competitors of Coke like Pepsi or Nestle, the growth is intense)

6 Marketing strategies of competitors (there is a competition in promotion like Coke came with the label of
representing some relation like PAPA, DIDI, BHAI so as Pepsi came with emoji stickers on there packaging)

7 Number of competitors (other than carbonated drinks the competitors has come with different product ranges
like Kurkure and Lays from PepsiCo.)

PESTEL ANALYSIS

POLITICAL
 • Shifting to healthier drinks may prevent Coca Cola from stopping distribution.

• Coca Cola may therefore be influenced by accounting , taxation, internal marketing, and adjustments in
labor laws.

• The sustainability and function of company will be determined by the political support.

• The issues of Trade Union and Interest Group could hinder on efficiency and effectiveness.

ECONOMICAL

• In context of India, the rural consist of 67% where more than twenty percentage are living under poverty
line. Similarly, the dominant population have low income this hinders the sustainability of Coca Cola
company.

• The inflation and unemployment are other major economical issues where the rural population couldn’t tap
into non essential products like Coca Cola.

• Similarly, due to uneven geographical condition, the cost per unit is differ. The price has seem to higher at
the most rural part.

• SOCIO-CULTURAL

• In the context of nutrients value of coca-cola, it contains high amount of sugar factor which has restricted to
the open market.

• The higher competition in the market has enabled competitors to get the market value in rural part this is
basically due to their diversification and innovative advertisements.

• Similarly, the issues of storage at rural market has also cumbersome to maintain its quality and taste.

• As Coca Cola market is covered with many rumors related to contains of pesticide and sugar factor of this
carbonated drinks causing obesity which impact its product line and product range.

TECHNOLOGY

• The change in technology has definitely brought significant changes in market share of Coca-Cola.

• Similarly, technology has brought huge opportunities in market for new entrants and its competitors in
terms of production and promotions.

• The advancement in technology has also enabled Coca-cola to reach its advertisement into different part of
the country.

• Technology has also allowed Coca-Cola on their unique packaging and bottling which has attracted
consumer.

ENVIRONMENT

• Coca Cola is affected by water accessibility. The issues of groundwater management is prime concern. As
most of the places turns to dry due to heat wave which leads to paucity of water.

• Coca Cola has to adhere to environmental laws as they manufacture their products. If anything is amiss, it
can affect how they distribute products — or stop production completely .

• The natural calamities has also adversely impacted their production.

LEGAL
 • Coca Cola have to maintain all business-related rights to past and future goods produced using a
proprietary process.

• The local level regulation plays important role on market penetration of unreached market due to rise in
local production.

• Coca Cola have to maintain all business-related rights to past and future goods produced using a
proprietary process.

• The local level regulation plays important role on market penetration of unreached market due to rise in
local production.

• Coca-Cola

• Product

• Price

• Place

• Promotion

Product Strategy

1. Low Cost Instant Powered Mixer on Sachet, starting from smaller packet to one kg.

2. Increasing the product segment of Dairy Drinks, Plant extract juices and other healthy drinks at rural
market as a substitute

3. Increasing the product diversification (from beverage to some snacks and cruncher)

4. Acquiring the local juice manufacture and there product which helps on business expansion by acquiring
the market players

5. Innovation on packaging: The two major innovation suggested are:

1. Increasing the product durability on storage of carbon. As normal packaging lack storage
of soda once open. So for few days preservation this packaging add value.

2. Bottle innovation basically to preserve the coolness of the product for long time. This
kind of bottle to restore the coolness of product during long travel.

3. Increasing the size; wide ring bottle neck.

4. Providing clear information about the nutrients values of healthy drinks on the bottle
packaging.

5. Increasing the uniqueness on shapes to the brand. 

6. Increasing quality checks and adopting disposable packaging techniques.

• COCA COLA PRODUCT

• Soft Drinks

• Water and Hydration

 • Juices and Dairy

• Coffees

• Teas

• Market Segmentation, Targeting and Positioning

• Geographical segmentation

• Increasing the consumption especially at summer from 60% to greater by focusing aggressive sales
promotion at the places having heat waves issues.

• Demographic segmentation

•  Targeting the age group by different product ranges like, fruit juices for old while soft drinks for youth.

• Powered sachet consumption to increase by focusing low income group.

• High sales promotion on festivals and marriage months

• Behaviour segmentation

• Plant Based abstracted drinks is focusing the Vegan market and lacto allergic customer.

• Targeting the health conscious with Diet Coke and other Sports Drink segment.

• Targeting

• As coca-cola is for all however it targets the age group of 12-30 years most

• Partnering with different food chain and local restaurant for its sales promotion

• Positioning

• For You, For Me: Increasing the sense of sharing and caring with a product of Coca-Cola

• Thanda Matlab Coca-cola

• Creating mind set through company logo color.

Price/Pricing Strategy

1. Pricing strategy is been aimed by driving to tap into the rural market by low cost strategy.

2. Streamlining the Supply chain: As reduction on the distribution cost directly reduced the per unit cost of
product.

3. Pricing is being set to reach the average customers’ and nor too low to give an impression of low quality.

4. As switching cost is low, so there will be wide availability of the product line.

5. Pricing is different from the size and type of product chosen. (Sachet Powered will be available from small
sachet to one kg and so the price is different)

6. Similarly, the product could be available by inserting the empty bottle of any product of coca-cola at Kiosk.
But as it is also limited with its terms and condition.

Place & Distribution Strategy

1. As, Coca cola makes the beverage and then transport it to its bottling partners, then bottles are filled and
transported by road to the stockists, then the distributors and finally to the prospect market. So the long
chain can be reduced by establishing Kiosk at different places.

2. For the reduction of shipment cost and storage issues, expansion of bottling partners at rural allows for
market expansion, opportunity to generate values by market and easily tap into untouched market.

3. For maintaining the quality of product, there will be an innovation in the shipment. The shipment will be
done by refrigerant vehicle. This will meet the availability of product at weekly market (haat bazar).

4. Similarly, distribution of solar freezer to local retailers reduces the problem of electricity.

5. Coca Cola products are also distributed to various Hotels and Restaurant as a direct sales.

6. Similarly, retailers training and their capacity building will also be given in order to increase the sales.
Along with this they will be remunerate based on the target and performance.

7. The means for online distribution will be next move to enter into the rural market.

Promotion & Advertising Strategy

1. Endorsement by normal people especially targeting frontline workers. For an example, doctor to be used as
promoting Kinley processed water.

2. CSR for goodwill and society development. It will be focusing more on WASH Program. As Coca cola will
be excessively using ground water.

3. Aggressive Marketing

1. Video and advertisements will be time and again displayed on different digital means.

2. Print advertisement like news ad, signage board and other display means

3. Highway Promotion Project: To bridge the rural and urban, coca cola will be focusing its
advertisement means by subways retailers and distribution centers. Similarly, coloring the coca
cola theme will also be conducted.

OPERATION STRATEGY

1. Understanding the competitive market dynamics

• Image building: Coca-Cola

• Cost leadership: Pepsi co

• Place and distribution: Frooti

• Product Differentiation: Dr. Pepper

3. Indentify order-qualifying and order- winning attributes

• Order Qualifying: Preservation of coolness of product and carbon

• Order Winning: Packaging, Kiosk, varieties of drinks

• Identify strategic options for sustaining competitive advantage

• Promoting Supply Chain: Shipments plays important role for maintaining the quality so it
is we are adopting innovative way for transportation like Distribution through freeze
fitted vehicles.
 • Aggressive Marketing: As the brand image of Coca-Cola is strong however the
innovation of the product packaging and unique features needed to be promoted.

• Sales Promotion: Reaching to untapped market of rural will be possible due to

involvement on push sales. For this, it is necessary to focus on rural weekly market.

• Maintaining Relationship with partners and distributors.

• Devise the overall corporate strategy

• Promoting Supply Chain

• Aggressive Marketing

• Sales Promotion

• Arrive at the operations strategy

• Price: In order to reduce the unit price we will follow economies of scale. Similarly other
variable costs are also needed to ease.

• Location : It is significantly important to increase number of outlets/retailers at rural

part.

• Quality: Total Quality Management methods will be followed to maintain quality of the
product. On the other hand innovation of the packaging will allow to preserve the teste of
product.

• Speed or Turnaround: For the maintaining the freshness and chillness of the product,
compressor fitted vehicle will be used for transportation.

• Promotion: Radio advertising, sales promotion and other displays will be done on rural
haat bazzar.

• Market Segmentation: After all, segmentation is also equally important for reaching the
right market. The fruit drinks are basically segmented to elder people.

EVALUATION AND CONTROLLING

Decisions

 Increasing the sales in Rural India Requirements

 Increase in Product line segments

 Alternative solution for electric refrigerator

 Number of Retailers in rural India

 Hiring Local sales personnel

 Innovation at packaging

Process of Strategic Evaluation

(Example from hypothetical evaluation report)

1. Fixing benchmarking of performance: “Happiness of the customer will increase the sales” is being used as
benchmark which is a qualitative means.
 2. Measurement of performance: In-order to measure the performance, Annual Turnover will be used as a
standard.

3. Analyzing variance: Due to quick change in temperature of bottle coke the real essence of coke will not
meet.

4. Taking Corrective Actions: Adopting innovative packaging for preservation of the chillness.

TYPES OF CONTROL

1. Premise Control: Rural Part of the Nation. For an example, the demand of Lassi at Punjab is grater than
Soft drinks, so to control the market Coca-Cola can tap into dairy drinks. Through this, as a product
differentiation technique, coca-cola can get competitive advantage.

2. Implementation Control: Community Participation for understanding the reviews and perception. To
conduct this survey, local Sahayogi Didi will be hired. Sahyogi Didi will be involve on conduct social
audit.

3. Strategic Surveillance: The retailers and outlets plays important role of environment scanning.

4. Special Alert Control: As a medical pressure of sugar factor, coca-cola can promote the healthy drinks
segment and such reactive approach will enable to sustain market.