Case Study Final 1
Case Study Final 1
Case Study Final 1
CASE 1:
Introduction
Britannia becomes a bakery manufacturer in India. In 2009, the business
enterprise had commenced supplying especially fortified biscuits to small groups of
college-going youngsters. The movement presented the organization’s awareness of
the substantial national problem of malnutrition and ambition to increase the logo.
But, Vinita Bali, lead executive officer, confronted two demanding situations- the
way to scale up the manufacture and distribution of social merchandise, and how to
expand the social product right into a sustainable commercial enterprise. In order to
conquer the difficulties, Bali made several critical policies. The file analyses the
foremost plans in finance, marketing, competition, and external surroundings
elements.
History of Britannia
Set up in 1892, Britannia became the biggest manufacturer of bakery merchandise in
India, with a 28-in step with-cent proportion of the$3- billion Indian biscuits and
bread marketplace. The company changed into regarded for launching variants of
current and new products to cater to customers. Therefore, product innovation
makes Britannia stand out from many competitors. In 2010, the Indian government
operated the Center Meal Scheme, presenting a cooked nutrient meal to number one
college youngsters, which aimed at combating malnutrition- the most crucial
problem in Indian even across worldwide. Britannia joined the policy, presenting
especially fortified biscuits to kids and found out the significance of social products.
therefore, the organization attempted to scale up the manufacture and distribution
of social merchandise and even increase them into a maintained enterprise.
Marketing Strategies
The fashion of the Asia-Pacific biscuits marketplace will increase every 12 months.
The market grew by 3.9% in 2011 and reached a quantity of 1,934.5 million kg. That
is a challenge for Britannia to build a sustainable commercial enterprise in the Indian
biscuit market. But, Indians have a huge range of malnutrition. As Gillespie (2003)
factors out that India has many manufactures of meals and beverages but pregnant
females and children nonetheless are afflicted by malnutrition. This might be
regarded as either trouble or a possibility for Britannia’s advertising and marketing
approach which did no longer remember sufficient to educate fortified biscuit
products and did now not provide sufficient product varieties to Indian customers.
Britannia’s Competition
Competition in bakery products became fierce in India, not most effectively coming
from neighborhood agencies, along with Parle merchandise, ITC, and Surya foods,
but also international corporations, including GlaxoSmithKline, Kraft foods as well as
PepsiCo. Those global companies together with having extra financial resources
additionally have substantially greater advertising and marketing and distribution
resources. Competitive advertising and different aggressive motions pursued by
these huge corporations, besides progressive products and fee wars by way of
countrywide gamers, might make it extra difficult for Britannia to sustain its
leadership function.
1. Strengths-
It is the only bakery company in India that supplies items to various types of
enterprises, allowing them to take home a large percentage of the profits. On
the Indian bakery market, Britannia owns a 30 percent share of market share.
Because it is used in a wide variety of bread items, including biscuits, rusk, sweets,
and dairy products such as milk, cheese, and butter, its shelf visibility is quite high.
Their targeted advertising and marketing initiatives resulted in a high level of word-
of-mouth and TOMA attention. Founded in 1892 in a tiny home in Calcutta (now
Kolkata), Britannia has been serving Indian markets for the past 128 years. In the
British Raj, Britannia cookies were made for British officers and their families, who
indulged in excessive tea-time eating in England. Throughout the years, Britannia
biscuits have been enjoyed by Indian customers. Britannia is India’s largest food
company, generating more than Rs. 6000 cr in revenue and serving more than half of
the country’s population through 3.5 million stores. Net income from the internet is
1660 million US dollars. Britannia has a total of 4480 employees. It offers a wide
range of items for different economic levels, including tiger cookies, Milk Bikis, top
day, whiskey, tiny hearts, crackers, and nutria choice. With such a large number of
SKUs on the market and a massive distribution network, Britannia has reached every
corner of the globe. As well as biscuits, bread, coffee, roast and a variety of dairy
devices, including milk, yogurt, and specially made dairy-based beverages, Britannia
offers a variety of delicious and balanced alternatives.
2. Weaknesses-
Britannia is overly dependent on the biscuit industry, which is responsible for 75
percent of its income. Because they are also market leaders but are also overly
dependent, their long-term commercial business life might be harmed as a
consequence of this. Since Bourbon & Britannia became commodities, Parle
introduced “Parle Bourbon” biscuits. However, if it’s utilized in the same way by
various organizations, it might lead to client confusion and a loss of revenue. Except
for India, Britannia has subsidiaries in Dubai and Oman. But the items’ total exports
are a lot less than their real export capacity. The dairy business is suffering,
contributing just 5% of the firm’s total revenues.
3. Opportunities-
Growing market share and repositioning in the dairy sector may be achieved with the
use of organoleptic (taste, flavour, and colour) dairy products. The market
for healthy food products is influenced by changing lifestyles, fitness education, and
rising disposable incomes. It will be possible for the organization to become a
worldwide leader in food goods if it expands its operations to other global markets.
4. Threats-
Britannia will find it tough to differentiate itself from competitors in the biscuit and
bread business, including Priya Gold, Anmol, ITC, and Parle. Falsified products
routinely threaten to hurt a brand’s market presence. An increase in the price of
products might lead to an increase in the price of the final product. An increase in
the rate of charge may also result in a decrease in production or a demand reduction.
Customers might be tough to keep as a result of the diversity of the FMCG
industry and the fact that so many manufacturers promise different benefits.
Keeping clients is extremely difficult due to the fact they are constantly looking for
other options. New versions, percent sizes, and promotions must be taken into
account by the organization. Agency must increase its reach in rural areas, where the
product’s supply might be a major concern.
SOLUTIONS
Britannia, as a responsible corporate citizen, shares the responsibility to create value
for our stakeholders through our products and processes, as well as ensure positive
impacts on the environment and communities we are located within. Our
sustainability strategy is rooted in this commitment, which has shaped our
sustainability vision of being a Responsible Global Total Foods Company driven by
the passion to enhance goodness in the value chain. Thus, our consumers continue
to receive Exciting Goodness, crafted and delivered responsibly. We have developed
a strategic framework for sustainability which rests on 4 core pillars: Growth
(Economic), Governance, Resources (Environment), People (Social). The pillars in turn
are supported by 8 levers which split into 26 programs. Each of these 26 programs is
assigned annual targets and key performance indicators (KPIs) to evaluate our
progress as we put the strategy into action.
CONCLUSION
There is absolute confidence that fortified biscuits are the answer for nation-huge
malnutrition even though the majority lack recognition of the importance of these
meals. But, if the organization cooperates with the government and teaches the
clients to know fortified biscuits, it would be a vivid destiny for Britannia to sell this
product at the same time as competing with different counterparts. It is viable that
Britannia scale up its business from India to the world and nutritious products could
be a sustainable commercial enterprise based totally on the huge-scaled promotion.
REFERENCES:
• https://oxfordreference.com
• https://en.m.wikipedia.org
• https://www.ibef.org
CASE 2:
National Peroxide Ltd (NPL) is an establishment, which was listed on the BSE in 1954.
A company, which belongs to Wadia Group (having an interest in several businesses
from Airlines to FMCG) of companies.
The Single most active constituent of Hydrogen Peroxide is “Active Oxygen” which is
obtained by controlling the decomposition of Hydrogen Peroxide with water. Hence,
it is a clean process, which does not generate harmful or environmentally unsafe
products while bleaching, or chemical synthesis.
Hydrogen peroxide is a pale blue clear liquid slightly more viscous than water.
Hydrogen Peroxide is mainly used as a non-polluting oxidizing agent and is used as an
oxidizer, bleaching agent and disinfectant. It is used for refining non-edible oil, water,
and effluent treatment, paper pulp bleaching, chemical synthesis, textile bleaching
industry, sugar bleaching industry and metallurgy industry. Hydrogen peroxide is the
simplest form of peroxide constitute only hydrogen and oxygen in the world, which
has application in almost all types of food and beverages. Hydrogen peroxide is used
to make sodium perborate and sodium percarbonate, which are further utilized as a
bleaching agent in detergents.
MAJOR PROBLEMS:
There are 3 other producers of Hydrogen Peroxide besides National Peroxide Ltd
(one of which is Hindustan Organic Chemicals {A Government of India Undertaking})
in the country and the combined production is 210000 MT. NPL holds 33-35% (which
has fallen by 3-5 % in the last 2-3 years) of market share. With the eco-friendly
nature of the product (stringent environment pollution norms, rising awareness) the
demand in the market is expected to grow by 7-10%. Due to continuous surplus in
other Asian Countries, there has been continued import of Hydrogen Peroxide in
India. The growth of pulp/paper, Textile (the focus of Government of India to further
boost the growth of the textile sector) industry with its large size and new capacity
expansion of several companies in these segments will rip up demand for Hydrogen
Peroxide in future. The demand from oil refineries will also grow as India needs to
process approx. double quantities of crude oil to cope up with the rising demand.
FACTS:
Fraudulent Cheques of National Peroxide Ltd:
Hundreds of fraudulent Cheques were issued from the bank accounts of NPL totally
Rs 37 Crores. The company in their 2018 annual report had stated about this in the
Director’s Report.
The company has stated that they have further strengthened their controls so such a
kind of action does not take place in the future.
The management has filed police FIR (Criminal Proceedings) against the same with
Joint Commissioner of Police.
SWOT ANALYSIS:
STRENGTH:
• The SSGR for National Peroxide Ltd has increased from 2% 5 years back to 27%
with the strong performance of the business. This is mainly due to the rise of
the Net Profit margins (As per earlier discussion the profits are linked to the
volatility of crude oil prices, which does affect the RM costs of the business.
Hence SSGR could drop in future with volatility in crude prices). The company
is growing well below its current SSGR rate, which is also evident from the fact
that they do not need to rely on external borrowings to grow their business
• Wadia Group has a big diverse business conglomerate. Where the highly
successful companies Britannia Industries are also in their basket of holdings.
Ness Wadia is the MD of National Peroxide Ltd. Mr. Ness Wadia holds several
directorships in several other group businesses also enclosed.
WEAKNESS:
• National Peroxide Ltd Needs Hydrogen Gas as a key raw material. Steam
reforming of natural gas is done to get hydrogen gas. India imports (India
imports LNG through Petronet (Dahej), Shell (Hazira) and Ratnagiri Gas and
Power Pvt. Ltd. (Dabhol) half of its natural gas requirements. Forex (US $ /
Rupee) and price of natural gas (Crude oil related) fluctuations affect the
prices of raw material for the company to a great extent. In addition, natural
gas does not fall under the limits of GST and the VAT paid on the same is not
allowed to be claimed under input tax credit, which further puts pressure
increasing the raw material costs for the business.
• National Peroxide Ltd has a long-term contract from GAIL (which has a clause
for the price for the same at an average of 60 months)
• Significant imports of Hydrogen Peroxide have taken place from Thailand,
Bangladesh, and South Korea. The imports from these neighbouring countries
were significantly at low prices than Indian domestic companies selling prices.
The Government of India has imposed an anti-dumping duty to protect the
domestic industry. The same has been imposed from Bangladesh, Taiwan,
South Korea, Pakistan and Thailand. From some ASEAN and SAARC countries,
there is still “zero” customs duty, this will distort the business economics. It is
mainly because of the protection from this anti-dumping duty that domestic
companies are increasing their production capacities to fulfil the demand.
They are working to become an import substitute for their B2B relations.
OPPORTUNITIES:
• NPL currently trades at a P/E of 8.34, which does offer some margin of safety.
However, with the protection of anti-dumping duty and capacity expansion of
the plant can give growth going forward. Here important aspect to take note
is there are a lot of moving parts in this business being fluctuations in crude oil
(natural gas) prices, forex fluctuations, cheaper imports, (long term contract
with an average of 60 months with GAIL might lead to very different RM prices
than current prevalent prices).
THREATS:
• Hindustan Organic Chemicals Limited (HOCL) (http://www.hoclindia.com/) (a
GOI undertaking): Hindustan Organic Chemicals Limited (HOCL) is the
Government of India owned company based in Mumbai, Maharashtra.
• Asian Peroxides Limited (APL) (unlisted private player established in 1987) is
the third-largest hydrogen peroxide (HPO) player in India.
• Gujarat Alkalis and Chemicals Ltd (GACL) (a Government of Gujrat
Undertaking): Gujrat Alkali has diverse business it would not viable to
compare the operating metrics of Gujrat Alkali with National Peroxide Ltd.
Gujrat Alkali has a production capacity of 53080 MTA as per their Investor
Presentation.
• Indian Peroxide (unlisted private player)
(http://www.indianperoxide.com/index.html): Indian Peroxide is a private
SOLUTIONS:
National Peroxide Ltd is the largest producer of Hydrogen Peroxide in India with a
35% market share. They sell domestically with zero exports but have to bear the
forex fluctuations for their raw materials, which acts as a risk to their profitability.
The products it makes are used by several B2B players in their industry from Pulp /
Paper, textile to oil refineries.
The key raw material for the company is Hydrogen Gas, which is made from steam
reforming of Natural Gas, which is linked to crude oil. The fluctuations in crude oil
prices affect the prices of the raw material for the company. To protect from the
same, the company has entered into a long-term contract with GAIL India, which has
a special clause to account for crude oil prices on an average of 60 Months. This
clause has shown adverse effects in 2015 when the prices of crude oil dropped
drastically and stayed at lower levels. Due to the average, the net costs for the
company were much higher than the spot prices in the market during that time
CONCLUSION:
Recently the company is expanding its production capacity from 95,000 MT to
150,000 MT, which will be operational in CY 19-20. The company has taken a plant
shut down for the same. It expects to cater to the demand from the customers from
the Inventory it holds in hand. Other players also in the industry are expanding their
capacities. This is mainly because of the imposition of anti-dumping duties from the
Government of India to protect the domestic industry.
The size and demand for the Pulp/paper industry are growing and the Government
of India has a key focus on the development of the Textile industry. This leads to the
visibility of the demand for Hydrogen Peroxide (coupled with the benefits from Anti-
Dumping Duty).
National Peroxide Ltd is a commodity business in nature, which has to rely on several
aspects like crude oil, forex, anti-dumping, constant supply of raw materials for
uninterrupted production. Commodity business moves in cycles and past excellent
performance in profitability may not sustain going forward.
REFERENCES:
• https://www.naperol.com
• https://www.dnb.com/business-directory/company-
profiles.national_peroxide_limited.255be120103a86b84b02c022e3b36bb0.html
CASE 3:
Executive Summary:
Reliance Jio Info comm Limited, popularly known as Jio, is a mobile network
operator.
Owned by Reliance Industries and headquartered in Mumbai, it operates a national
Long- Term Evolution [ LTE] network with coverage across all 22 telecom circle.
Jio does not offer 2G or 3G service, and instead uses Voice
over LTE (VoLTE) to provide voice service on its network. The launch of Reliance
Jio has caused a revolution in the telecom industry. Now, Jio claims to be
the world’s largest data network, based on mobile data consumption.
The growth is especially pronounced in rural areas, where there are now over
500 million wireless subscriptions, roughly 80 million more than there were
before the company formally began its operations. As more Indians gain phone
subscriptions, more are coming online. A 2017 report by the Internet and Mobile
Association of India estimated that nearly 50 million Indians gained internet
access between December 2016 and December 2017, allowing many of them
to surf the web, send
WhatsApp messages and stream videos for the first time
According to the Telecom Regulatory Authority of India (TRAI), as of February
2019, there are 1.17 billion mobile-phone subscriptions in India, an increase of
roughly 140 million subscriptions since August 2016—the month before Jio
launched. The growth is especially pronounced in rural areas, where there are
now over 500 million wireless subscriptions, roughly 80 million more than there
The Oxford College of Business Management 12
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were before the company formally began its operations. As more Indians gain
phone subscriptions, more are coming online. A 2017 report by the Internet and
Mobile Association of India estimated that nearly 50 million Indians gained
internet access between December 2016 and December 2017, allowing many of
them to surf the web, send WhatsApp messages and stream videos for the first
time.
2: High deployment costs and right of way (RoW) issues in laying fiber to connect
towers.
1: Mukesh Ambani invested app 1,50,000 crores in jio. This is probably the highest
investment by a company for its start up.
3: Reliance Industries (RIL) Chairman Mukesh Ambani has said that the telecom unit
is “ready” to roll out its fourth-generation (4G) services, and will cover 80% of India’s
1.3 billion population by the second half of 2016. “By the end of 2017, we will cover
90% and by 2018, all of India will be covered by this digital infrastructure,” Ambani
said.
4: They have erected mobile towers that look like trees. So, they blend into the
surroundings helping it maintain the beauty.
5: With the launch of Reliance Jio, India became the number 1 country in the world
as far as mobile data consumption is concerned. Earlier India was at no. 155.
Assumptions:
For the purpose of this case study, I spoke to about to about some of my friends
and family members, to understand, 1: Why do they use jio?
User experience:
Strengths of Jio
Strengths are characterized as what every business is best in its array of tasks,
giving it an advantage over its rivals. They are inner qualities and assets that help an
organization get effective results and can be utilized for the upper hand.
Weaknesses of Jio
Weaknesses are inner qualities and assets that neutralize a fruitful result. It is
utilized to
allude to regions where the business of the association needs improvement.
● Late Entry –Reliance Jio has made a late introduction to the market which
previously had set up players like Airtel and Vodafone who had involved a
spot in the personalities of the client. It is trying to build a portion of the
overall industry fundamentally since the contenders are solid MNC’s, the
place where the money
Opportunities of Jio
Opportunities are delegated outer components that the substance can gain by or use
for its potential benefit to accomplish its objectives. These emerge when an
association can exploit conditions in its current circumstance to design and execute
methodologies that
empower it to turn out to be more productive.
Threats of Jio
Threats emerge when conditions in an outside climate risk the unwavering quality
and benefit of the association’s business. These outside variables could seriously
influence
the achievement of the undertaking.
● Risk of Loss of Customers- Customers lean toward Jio fundamentally in light
of the low costs that they offer. At a phase when the organization expands its
value,
there might be a deficiency of clients. Client devotion is a test.
● Removal of Fee Services- Jio currently is associated with a lot of freebies.
Once
these are eliminated there might be a drop in deals for the organization.
● The Loyal Customer Base of Existing Players- The current contenders have
a solid presence on the lookout. A late contestant like Jio will have a test in
persuading faithful clients of different administrators since individuals are
inclined
toward more steady and dependable administrators.
2: jio also planned to enter into the broadband network to make a revolution on the
wired internet connections.
3: jio is providing the jio apps and IT Teams of jio are developing new Apps that
may need for upcoming Generations
4: The IT team also focuses on upgrading current apps and adding new features.
Conclusion:
In this project, a complete analysis of the upcoming of Jio and its sudden success
story was looked into. The organizational structure, planning and marketing
strategy, staffing and recruitment, SWOT analysis, PEST analysis, promotional
strategy, the impact of coming of Jio, Government policies, controversies
surrounding Reliance JIO, its ventures and collaborations and future projects were
discussed in detail. In this process efforts were made to bring in data and
informations from various researches and studies conducted in these fields. The
management principles adopted by the company were also analyzed and
studied in this project
REFERENCES:
• https://www.jio.com
CASE 4:
EXECUTIVE SUMMARY:
To take their inventory online and sell through social channels. Shortly afterwards,
Meesho pivoted again, morphing into India's first online distribution channel for long
tail products, providing opportunity for individual resellers to sell these products on
Facebook, Instagram and other social networks.
Meesho has been successful in providing a model for entrepreneurs and small
businesses to accelerate sales beyond metros. Meesho's products are essentially
in unbranded and long-tail categories such as fashion, beauty, furnishings, and home
appliances
Situational analysis
With intense competition from companies to grab a significant piece in the market
share and their product offerings becoming less differentiated with products trying to
solve multiple correlated needs under single applications for their users, the customers
are becoming less loyal over the years with the cost of acquiring new customers going
up each year significantly.
Product teams usually focus upon acquiring new customer and significant manpower
goes into making the onboarding funnel smoother for the product, but charting the
roadmap beyond has become way more important now than a few years ago.
Improve engagement and retention for end customers on the Meesho app
• Meesho is also the platform of choice for millions of consumers from Tier 2+
cities to purchase best quality products at lowest prices. One of the goals at
Meesho is to increase the frequency of visits and time spent on the app by
these end consumers.
• Putting yourself in the shoes of a product manager at meesho, conceptualise
a product strategy to improve engagement and retention for end
customers on the meesho app.
Please choose any one problem statement from the two options and submit your
presentation in a 10-15 pager PDF. The submissions will be evaluated on both
breadth and depth of the ideas grounded in user & market research (actual
wireframes & mockups are not needed).
Critical Factors
• Accessible and Affordable internet. The oncoming of Jio made it cheaper for
people to get access to the internet and so Meesho now has customers from
two-tier and three-tier cities. ...
Assumption
SWOT Analysis
Strength
• More customer focused
• Flexibility
• Innovativeness
• High visible talk management
• Quick to size opportunities
Weakness
• Skilled labour
• Poor access to finance
• Low strategic thinking and planning
• Lack of access to new technologies
Opportunities
• Enhanced credit support
• Support for technology upgardation
• Skill development and training prgrammes
Threats
• Quality of products
• Competition
• Frequent increase input cost
• High distribution cost
Solutions
Meesho is India’s fastest-growing internet commerce company aiming to make
eCommerce accessible to everyone. Meesho's vision is to enable 100 million small
businesses in India, including individual entrepreneurs, to succeed online. Meesho is
Vision
Conclusion
We can conclude that there many ways by which Meesho Company can
generates revenue and earns a decent profit from it. Meesho is one of the many
startups from India that have unique targeting and marketing model. Meesho is the
latest Company to join the Unicorn Club.
REFERENCES:
• http://www.meesho.com
CASE 5:
The Coca-Cola Company has operations in over 200 countries worldwide. As such,
the company must be aware of the latest economic trends and political movements
in each country so as to formulate corporate strategy and manage day-to-day
operations. Operating in such a vast geographical area means there are often some
regions which lack readily available information that can be used by executives to
formulate said strategy. Coca-Cola’s Central America and Caribbean Business Unit
has been subscribed to Focus Economics Consensus Forecast reports since 2010,
which have provided them with significant time-savings as well as reliable, consistent
macroeconomic intelligence.
COCA-COLA OVERVIEW The Coca-Cola Company was founded in 1886 and over
130 years later it is currently the world’s largest beverage company. The company
operates over 500 different sparkling and still brands and over 3,900 beverage
choices, including its flagship product, Coca-Cola. The company has been operating
with a franchised distribution system since 1889 and currently has its products sold
in over 200 countries. More than 1.9 billion servings of Coca-Cola products are
consumed all over the world per day.
PROBLEMS COCA-COLA WAS FACING Dennys Rodriguez is Coca-Cola’s
Strategic
Planning Manager for Central America and the Caribbean, part of the larger Latin
Center Business Unit. Among Mr. Rodriguez’s many responsibilities, he is in charge
of all of the planning processes, such as the annual business plan for the region,
and also works in several strategic initiatives involving the entire Latin America
business unit. Before Mr. Rodriguez and his team became subscribers to Focus
Economics Consensus Forecast reports, planning was problematic due to some key
issues with regard to available macroeconomic intelligence on the region.
Time constraints
Working in a geographical area with many smaller emerging markets means that
availability of macroeconomic information is often lacking. Information on
macroeconomic indicators is scattered in various public sources such as government
communications and central bank reports. However, collecting and compiling this
information from various sources proved to be quite a time consuming and inefficient
task for Mr. Rodriguez and the Strategic Planning Department. Depth of coverage
Another pain point for Mr. Rodriguez prior to subscribing to Focus Economics’
reports was the depth of coverage provided by the aforementioned public sources.
The first issue related to this was that there was not enough information for all of the
countries for which he was responsible. The second issue was that of the available
information, such as written analysis, data and forecasts, much of this was not
reliable and was inconsistent across sources.
Medicinal challenge
The beverage and the drinks are said to contain the coca plant and cola nuts (a
valuable brain tonic and cure for all nervous affections, sick head-ache and
melancholy among others). With governments across the globe and media
publicizing health problems arising from obesity and inactive lifestyles represents a
significant challenge.
The bottle challenge.
The company is experiencing the problem of uniformity in its bottles with hundreds
of bottlers selling the Coca-Cola around the country. Hence this leads to know
uniformity on how the products look like. This is because there are different designs
of bottles.
The COCO-COLA Company were facing very problems against PepsiCo, The
company had a lot of challenges as it contains a lot of sugar where it also effects
the body very much.
Executive Summary
Coca-Cola, or Coke, is a carbonated soft drink manufactured by The Coca-Cola
Company. Originally marketed as a temperance drink and intended as a patent
medicine, it was invented in the late 19th century by John Stith Pemberton and was
bought out by businessman Asa Griggs Candler, whose marketing tactics led Coca-
Cola to its dominance of the world soft-drink market throughout the 20th century.
The drink's name refers to two of its original ingredients: coca leaves, and kola nuts
(a source of caffeine). The current formula of Coca-Cola remains a trade secret;
however, a variety of reported recipes and experimental recreations have been
published.
The drink has inspired imitators and created a whole classification of soft drink:
colas.
Criticism of Coca-Cola has arisen from various groups around the world,
concerning a variety of issues, including health effects, environmental issues, and
business practices. The drink's coca flavoring, and the nickname "Coke", remain a
common theme of criticism due to the relationship with the illegal drug cocaine. In
1911, the US government seized 40 barrels and 20 kegs of Coca Cola syrup in
Chattanooga, Tennessee, alleging the caffeine in its drink was "injurious to health",
leading to amended food safety legislation.
Beginning in the 1940s, Pepsi started marketing their drinks to African Americans, a
niche market that was largely ignored by white-owned manufacturers in the US, and
was able to use its anti-racism stance as a selling point, attacking Coke's
reluctance to hire blacks and support by the chairman of The Coca-Cola Company
for segregationist Governor of Georgia Herman Talmadge. As a result of this
campaign, Pepsi's market share as compared to Coca-Cola's shot up dramatically
in the 1950s with African American soft-drink consumers three times more likely to
purchase Pepsi over Coke.
Statement of Problem
• Over the years, Coca-Cola faced a number of challenges, including its latest
challenge, “sugar.” According to Advertising Age, sugar is “Public Enemy
No.1. It’s blamed for obesity and even termed toxic.
• Contains a lot of caffeine. Which is not so good for health.
Assumptions
• Coke’s rival Pepsi’s taste is better at the first sip.
• Coke has a lot of health effects.
• Coke contains a lot of caffeine in it.
• Coco-Cola mostly makes carbonated drink.
• The process of making coke pollutes a lot to the environment as it is made
from carbonated water.
• Coke has a lot of sugar in it which can make a consumer a diabetic.
SWOT Analysis
Strengths.
• Coca Cola is the top-most beverage brand with a presence in 200 countries,
it bagged the highest brand equity award in 2011;
• The company valuation of Coca-Cola is $79.2 billion. Its subsidiaries include
Limca, Sprite, Fanta, Thumps Up, Maaza, Kinley Water, Minute Maid;
• The company has the most robust supply chain and delivers a product in the
remotest places. The vast global presence has made it created its brand
image;
• It associates with celebrity brand ambassadors for advertising and marketing.
It maintains a good marketing strategy. Coca Cola enjoys customer loyalty;
• The company performs CSR activities in water conservation, education,
health, and recycling, it has an association with international sports events
and sponsorship, the company is moving towards sugar-free options, water,
and juice.
Weakness
• PepsiCo aerated drinks are giving it tough fights over market share.
• The company's soft drinks have high sugar content and other chemicals that
have health concerns.
• Unlike PepsiCo, the company has not yet initiated a food business. The
focus is primarily on beverages. More so, until now, it has not shown any
interest to make healthy beverages.
• Though the company has a wide variety of brands, it is primarily dependent
on Sprite and Coca-Cola brands.
• The company has faced flak for water management issues and exploiting
groundwater even in water-scarce regions.
Opportunities
• The company's performance assessment shows how they can use the
available opportunities in their favor. The company can concentrate on the
ones that align with their strengths. As a top-rated brand, Coca Cola has
several strengths which allow them to use many of the opportunities to
ensure their growth.
• It can increase its reach in untapped countries to boost the Coca-Cola
market and supplychain improvement.
• The company can popularize lesser-known products. It must utilize the
scope to acquire other companies and strengthen the company.
• It can diversify its product portfolio by starting the snacks industry to
compete with PepsiCo. It can also start a full-fledged business for health
drinks.
• Kinley’s expansion is not at the level of Bisleri. It can grow its business for
packaged drinking water.
Threats.
• how to keep the first position of beverage industry in the world seems the
priority for Coca Cola, since there are substantial brand-new vegan and
other organic beverage brands grown fast.
• Fresh water is the greatest threat of all time.
• People are interested in making healthy choices these days and so are
avoiding aerated drinks. To source, raw material is a significant concern.
• It is facing difficulty in complying with different government norms and
regulations in other countries.
• The recent economic slowdown, inflation, and instability have affected its
market share.
• Strong competitors like PepsiCo, Nestle, Gatorade, Lipton, Danone,
Schweppes are giving it a tough fight.
Solutions.
• Should concentrate on making healthier drinks.
• Should make drinks using less sugar and caffeine.
• Should diversify and also make other food products.
• Should spend more on promotional activities.
• Should interduce it in metaverse as it a very funny and innovative strategy.
• Should recycle old plastic and glass bottled and reduce the use of non-
biodegradable products.
• Coco-Cola should initiate and have innovative ideas.
Conclusion.
The problems faced by Coca-Cola Company are high sugar harmful to health,
increase in competitors, plastic bottle waste and water scarcity. These issues will
lead to many negative impacts to social and natural environment. By consuming
high sugar beverages and plastic bottle will detrimental consumers health and
destroy the environment. Increase in competitors will cause the sales of Coca-Cola
Company drop and the market share decrease. Actions need to be taken by Coca-
Cola Company to retain and improve their revenue and reputation.
Firstly, recommendation for Coca-Cola Company to solve the problems is
technology upgrade in frequent way. The company needs to replace the old
technology with the new technology to ensure greater efficiency and improve the
productivities. Since the technology evolves so rapidly, Coca-Cola Company
require to keep track for the revolution of technology to ensure the issues of plastic
bottle waste and water scarcity are solved by the correct and effective way. For
instance, the challenges of water scarcity have many technology methods to
alleviate the issue, but Coca-Cola Company require upgrading technology for better
result.
The following recommendation for Coca-Cola Company is increasing commitment to
social, community and environment when applied these ideas. The commitment
shows by Coca-Cola Company might improve the reputation of company and gain
respect from society. Hence, CocaCola Company has one more competitor
advantage to beat the rivals. Keep pace with current issues is extremely important
because it present the consumers’ voices. Coca-Cola Company require taking
attention about the environment pollution and the changes of lifestyle by reducing
plastic bottle waste, water scarcity and high sugar problem. For example, Coca-Cola
Company might move forward with commitment to be an industry leader in the
health, environment protection and sustainability arena.
Coca-Cola is an outstanding brand in the world. Excellent market strategies and
awesome innovation capacity make it remain in top position of beverage field.
However, there are still a lot of obstacles and improvement such as the labels of
“junk food”, the issues of contribute a huge plastic pollution and the problem of
deteriorating water shortages. Coca-Cola Company should develop more method
that is effective and refer the suggestions from others to eliminate these images
and maintain stainability.
References
• https://www.google.co.in
• https://www.wikipedia.org
• https://www.researchgate.net
• Https://www.mbaskool.com
• https://www.thestrategywatch.com
• https://www.coca-cola.com
META-REFERENCES
• https://oxfordreference.com
• https://en.m.wikipedia.org
• https://www.ibef.org
• https://www.naperol.com
• https://www.dnb.com/business-directory/company-
profiles.national_peroxide_limited.255be120103a86b84b02c022e3b36bb0.html
• https://www.jio.com
• http://www.meesho.com
• https://www.google.co.in
• https://www.wikipedia.org
• https://www.researchgate.net
• Https://www.mbaskool.com
• https://www.thestrategywatch.com
• https://www.coca-cola.com