Presented By: "KINGS" Nihal - Nidhi - Rajesh - Niharika - Nitesh - Vipin - Wahid - Upendra - Sourish - Aurobinda - 09

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Presented by: “KINGS”

Nihal -
Nidhi -
Rajesh -
Niharika -
Nitesh -
Vipin -
Wahid -
Upendra -
Sourish -
Aurobinda - 09
Presentation Structure
• Introduction
• Company Profile
• The New Product: ‘Organic Coke’
• Situation Analysis and audit of Current Strategy
• SWOT Analysis
• Primary and Secondary research techniques
• PESTEL Analysis
• Distribution system
• Channels of distribution
• Distribution challenges
Introduction
• This presentation aims to reinforce the Coca-Cola Company’s
status as a leader in innovation and successful product
launches. The launch of ‘Organic Coke’ helps to achieve the
company’s strategic goals and objectives which are as follows:
• Create strong consumer awareness for ‘Organic Coke’ through
the 4P’s;
• Become the market leader in the functional drinks segment
through sizeable market shares;
• Reinforce the company’s title of market leader in product
innovation and successful product launches
Company Profile
• The Coca-Cola Company was founded in 1886
with Headquarters in midtown Atlanta, Georgia
• Manufactures and sells concentrates, beverage
bases and syrups to bottling operations
• Its top brands are Coca-Cola, Diet Coke, Sprite
and Fanta. It currently operates in over 200
countries and markets more than 2,800
beverage products.
Company Profile

• Coca-Cola Company owns the brands and


• Responsible for consumer marketing
initiatives. The company is committed to
benefiting and refreshing everyone it reaches-
averaging a rate of 1.5 billion servings a day
consumed.
The New Product: ‘Organic Coke’

• The ‘Organic Coke’ is classified as a


functional drink, a sub-segment of soft drinks
in the Food and Beverage Industry. Over the
years Coca-Cola had introduced several coke
by-products such as the Diet Coke, Cherry
Coke, Caffeine-Free Coke, Classic Coke,
Vanilla Coke, Coca-Cola Orange, Coke Zero,
Coke Black Cherry Vanilla and many more.
The New Product: ‘Organic Coke’

The organic coke is a novel idea introduced to


further consolidate Coca-Cola’s commitment to
manufacturing and producing healthy products
which will bring an entirely new experience to
consumers. The product will be void of all the
chemically engineered additives, as was the
case when Coca-Cola was originally marketed as
a health drink.
New ideas due to cola war

• Because of intense competition between


Coca-cola and Pepsi, both are giving stretch
on healthy drinks.
• The health drink business is witnessing a
plenty of churn, with the segment growing at a
robust 20-25%in the past few years, compared
with less then 8% for carbonate drinks in the
past couple of years.
New product development

• People of rural areas are health


conscious.

• No energy can be gained from soft


drinks.

• Just fun and status symbol.


Entry of Healthy Drinks

• Because of bad effects of soft drink’s the


health drinks like real juice by Dabur,
Tropicana by Pepsi, and fruit drink like
Mazza came into existence.
Entry of Healthy Drinks

• Dabur’s Real is the market leader with


60% share.
• On second place Pepsi’s Tropicana(33%).
• In the fruit-based drinks category, Coca-
cola’s Mazza is the leader.
• After Mazza Parle’s Frooti and PepsiCo’s
Slice.
Entry of Healthy Drinks
Situation analysis and audit of
current strategy
Trends: In recent times, while the food and
beverage industry has experienced an increase in
value, the sales volume of carbonated soft drinks
are reducing drastically. This is as a result of
consumers increased awareness and
sensitisation to the benefits of healthier drinks
Profitability and future growth potential:
While the functional drinks sector only accounts
for 3.7% of the total soft drinks sales in 2004,
estimates are forecasted a growth of 7.3% in
sales and 11.0% in volume consumption by 2009.
SWOT Analysis

• Strengths: Strong brand name; effective


distribution channels.
• Weaknesses: Heavy reliance on product line
extension and carbonated drinks.
• Opportunities: Attraction to existing and
potential global partners.
• Threats: Free trade and stiff competition.
 
Primary and secondary
research techniques:
• Market research is usually carried out for two
primary reasons;
• To validate a hunch, or a directive from top
management; and
• To find new business opportunities.
• Who will buy this drink? How do they prefer to buy
it? How often do they buy this type of drink? What
do customers require? What price will they pay?
Primary and secondary
research techniques:
• Both primary research and secondary techniques
have been used.
• The primary research techniques used were
surveys and questionnaires taken in high schools
and university campuses and on the streets.
Online surveys were also used.
• Secondary research techniques also known as
Quantitative Market Research were also used. The
internet, reports of Coca-Cola were very useful.
Marketing Mix

• Pricing: 3 areas
considered;
• 1.Consumer
demands;
• 2.Potential
substitutes; and
• 3.The product life
cycle.
Marketing Mix

• Product: the ‘Organic Coke’ is a functional drink


void of chemically engineered additives.
• Trade name; Organic Coke, a Coca-Cola
product
• Branding; prominent and bright colourful
combination of green and red can drink
• Brand equity; Coca-Cola provides a consistent,
quality, innovative and inspiring drink
Marketing Mix

Promotions
• To win market share over our main functional drink
competitor and market leader PepsiCo;
• To propagate strong awareness about ‘Organic
Coke’ among the young adult as well as older adults
• Advertising message: “ Be Brave, Be Optimistic, Be
Different, Be Young, Take care of your BODY, Drink
Organic Coke”
Marketing Mix

• Place: this would include supermarkets,


convenience stores, direct sales, vending
machines, discount stores, independent food
stores, multiple grocers.
Positioning
• The basic goal of Coca-cola advertising was to make
customers think of Coca-cola when thirsty and to
assure them that the beverage would satisfy their
thirst better then any other liquid.
• “Organic Coke is a Delightful, Palatable, Healthful
Beverage. It relives fatigue and is indispensable for
Business and Professional Men, Student, Wheelmen
and Athletes. Relives mental and physical exhaustion
and is the favorite drink for ladies when Thirsty,
Weary, Despondent.”
Positioning
• Age wise division of Different drinks

Age Group Cola Drinks Other Soft Other Beverages


Drinks
Under 25 51.54 17.43 31.03

25-34 46.65 21 32.35

35-44 35.34 32.3 33.36

45-54 27.94 36 36.06

55-64 23.27 33 43.73

65 above 24.42 26.38 50.2


Positioning
tie-up with farmers for purchasing

• Perhaps, on of the biggest beneficiaries


of this growth is the Indian Farmer,
Because of the integration of
backward linkages by cola companies
to purchase processed fruit. While
Coca-cola is working with farmers in
Andhra Pradesh and Maharashtra.
PESTEL Analysis

• Political: Political instability in turn affects the


economy
• Economic; presently on recovery, demand should
grow
• Social; disposable income, social lifestyle
• Technology; advancement leads to innovative
products
• Ecological
• Legal
Distribution System
• Centralized distribution system used by the
company in the urban areas is not suitable for
rural areas.
• In the centralized distribution system, the
product was transported directly from the
bottling plant to retailers.
• In hub and spoke distribution system the
stock was transported from the bottling plants
to hubs, and then from hubs the stock was
transported to which were situated in small
towns.
Distribution System

• These spokes feed the retailers catering to


the demand in rural areas.
• Used large trucks for transporting stock from
bottling plant to hubs.
• Medium Commercial vehicles transported the
stock from hub to spoke.
• From spoke to village retailers the company
utilized auto rickshaws.
Distribution System

Organic Coke mainly focuses on direct selling


because:
• Sales person can tailor the message.
• Answer the quarries of the customers.
• During discussion new ideas can be
generated.
• Culture can be understand.
Channels of Distribution
There are mainly two channel category
a. Packaged Product Channel
b. Fountain Channel
The Packaged Product Channel include
a. Supermarkets
b. Mass Merchandiser
c. Drug Stores
d. Vending Machines
Fountain Channel includes
a. Fast food Restaurants
b. Sports Arenas
c. Convenience Stores
d. Gas Stations
Distribution Challenges

• In international markets, soft drink companies


face a number of distribution challenges. In
many of the emerging country markets such as
India, China and Indonesia.
• For example, poor road conditions and other
infrastructure problems render efficient
distribution by trucks very difficult.
• Physical Distribution
• Supplies
THANK YOU

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