Rural Marketing of Coca-Cola
Rural Marketing of Coca-Cola
Rural Marketing of Coca-Cola
SUBMITTED BY:
ASHMIL ALIAR
REG NO: MB196625
SUBMITTED TO:
Asst Prof: A KIRAN KUMAR
1. INTRODUCTION 1
2. RESEARCH METHODOLOGY 3
3. SWOC ANALYSIS 4
(STRENGTH, WEAKNESS, OPPORTUNITY,
CHALLENGE)
6. BIBLIOGRAPHY 9
CHAPTER- 1
INTRODUCTION
The company has operated a franchised distribution system since 1889. The
Company largely produces syrup concentrate, which is then sold to
various bottlers throughout the world who hold exclusive territories. The
company owns its anchor bottler in North America, Coca-Cola
Refreshments. The company's stock is listed on the NYSE and is part
of DJIA and the S&P 500 and S&P 100 indexes. The Coca-Cola Company is the
world's largest producer of plastic waste.
In July 1886, pharmacist John Stith Pemberton from Columbus, Georgia
invented the original Coca-Cola drink, which was advertised as helpful in the
relief of headache, to be placed primarily on sale in drugstores as a medicinal
beverage, Pemberton continued mixing experiments and reached his goal during
the month of May, the new product as yet unnamed nor a carbonated drink, was
ready for the market and was made available for sale. Pemberton's
bookkeeper, Frank M. Robinson, is credited with naming the product and creating
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its logo. Robinson chose the name Coca-Cola because of its two main ingredients
(coca leaves and kola nuts) and because it sounded like an alliteration.
John Pemberton had taken a break and left Robinson to make and promote,
as well as sell Coca-Cola on his own. He promoted the drink with the limited
budget that he had and succeeded.
In 1889, American businessman Asa Griggs Candler completed his
purchase of the Coca-Cola formula and brand from Pemberton's heirs. In 1892,
the Coca-Cola Company was formally founded in Atlanta by Candler. By 1895,
Coca-Cola was being sold in every state in the union. In 1919, the company was
sold to Ernest Woodruff's Trust Company of Georgia.
Coca-Cola's first ad read "Coca Cola. Delicious! Refreshing! Exhilarating!
Invigorating!" Candler was one of the first businessmen to use merchandising in
his advertising strategy. As of 1948, Coca-Cola had claimed about 60% of its
market share. By 1984, The Coca-Cola Company's market share decreased to
21.8% due to new competitors, namely Pepsi.
According to The Coca-Cola Company's 2005 Annual Report, it had sold
beverage products in more than 200 countries that year. The 2005 report further
states that of the more than 50 billion beverage servings of all types consumed
worldwide, daily, beverages bearing the trademarks owned by or licensed to
Coca-Cola account for approximately $1.5 billion.
In 2010, it was announced that Coca-Cola had become the first brand to
top £1 billion in annual UK grocery sales. In 2017, Coca-Cola sales were
down 11% from the year before due to consumer tastes shifting away from
sugary drinks.
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CHAPTER- 2
RESEARCH METHODOLOGY
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CHAPTER- 3
SWOC ANALYSIS
STRENGTH
4
WEAKNESS
OPPORTUNITY
1. Introduce new products and diversify its segments – Coca-Cola has the
opportunity to introduce new offerings in health and food segments just like
Pepsi. It can contribute to their revenue, and they can branch out from
carbonated drinks.
2. Increase presence in developing nations – Many regions with hot climate
have the highest consumption for cold drinks. Thus, increasing presence in
such locations can be excellent – Middle Eastern and African countries are a
good example.
3. Bring advanced supply chain system – Coca Cola’s business is entirely
dependent upon logistics and supply chain. Transportation costs and fuel
prices are always on the rise. Thus, coming up with some advanced and
improved systems for distribution can be an opportunity.
4. Packaged drinking water – Coca-Cola owns several packaged drinking
water brands like Kinley. There is a great potential for expansion in this
segment for Coca-Cola. There is an opportunity to expand and bring more
healthy drinks in the market to avoid people’s criticism.
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CHALLENGE
1. Water usage controversy – Coca-Cola has faced many criticisms over its
water management issue. Many social and environmental groups have
claimed that the company has a vast consumption of water in water-
scarce regions. Besides, people have alleged that Coca-Cola is polluting
water and mixing pesticides in water to clear contaminants.
2. Packaging controversy – Greenpeace censured Coca-Cola in its published
report in 2017 for its use of single-use plastic bottles. It has also been
criticized over its recycling and renewable sources.
3. Direct and indirect competition – Although direct competition from Pepsi
is clear in the market, however, there are many other companies which are
indirectly competing with Coca-Cola. Starbucks, Costa Coffee, Tropicana,
Lipton juices, and Nescafe, are the indirect competitors of Coca-Cola which
can threaten its market position.
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CHAPTER- 4
OUTCOMES OF THE STUDY
OUTCOMES
• There are only 2 Big competitors in the beverage segment – Pepsi and Coca cola.
Out of these 2, coca cola is the clear winner and hence has the largest market share.
Amongst all beverages, Coke, Thumbs up, Sprite, Diet coke, Fanta, Limca and
Maaza are the growth drivers for Coca Cola.
• Coca cola unlike Pepsi always tries to win peoples heart. Where Pepsi’s target is
continuously changing, and is targeted towards youngsters, Coca
cola targets people of all ages. The targeting is also done by celebrities who are well
liked – for example – Amitabh Bachchan, Sachin Tendulkar, Aishwarya Rai, Aamir
Khan etc.
• Coca cola has the largest distribution network because of the demand in the market
for its products. On the other hand, due to this successful distribution network, Coca
cola has been able to command such a high market presence.
• One of the most valuable companies in the world, Coca cola is valued around 79.2
billion dollars. This valuation includes the brand value, the numerous factories and
assets spread out across the world and the complete operations cost and profit of Coca
cola.
• 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. This vast global
presence of coca cola has also contributed to the building of the mammoth brand
name.
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CHAPTER- 5
EXPERIENCE, LEARNING & CONCLUSION
CONCLUSION
Throughout the years, Coca-Cola has grown to become one of the most
recognized beverage Company in the world. They have a large number of excellent
employees so that they can constantly improve their products. Coca-Cola is also an
experienced company as it was incorporated in 1886 which was about 129 years ago.
It has overcome most of the difficult stage and is now one of the top companies in the
world.
Even though Coca-Cola is a well-known brand, it still has some obstacles
which the company has to face. One of the obstacles would be the competition between
Coca-Cola and its competitors. Coca-Cola’s competitor would be Pepsico.INC. Both
of them make amazing beverage which is enjoyed by many. The difference between
Coca-Cola and Pepsico.INC is that Coca-Cola has secret ingredients that no one
possesses but them
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BIBLIOGRAPHY
1). www.bstrategyhub.com
2). www.notesmatic.com
3). en.wikipedia.org