Market Analysis of Coca Cola

Market Analysis of coca plant sess spark advancet up to PEST Analysis SWOT Analysiscoca plant- locoweed, corporation nourishing the globose community with worlds largest selling soft revel since 1886. Its nations top soft drink dirt, with the best bottling ne twork. It is the largest merchandiseer of non-alcoholic balwaysages in the world.In India, coca plant the skinny was the prima(p) soft drink till 1977 when govt. policies necessitated its departure. It returned to India in 1993 after a 16 year hiatus and made signifi toilettet investments to ensure that the beverage is unattached to to a greater extent than than and more population, even in the remote and inaccessible part of the nation. In the minds of worlds consumers the brand has assumed an iconic status. coca plant weed was ab initio advertised as a remedy for headache and exhaustion. It has been advertising on television for 50 geezerhood.COCA COLA INDIA (CCI)Leading player in the Indian beverage food m arketA fortune 500 company in India (73rd position)coca plant Cola India with PepsiCo forms DuopolyIncludes 24 company-owned bottling operationsCame back in 1993 and acquired local anesthetic brands(Ibef, 2010)(Coca Cola India, 2010)2. COMPANY BACKGROUNDMarketing Coca Cola in India-The post-liberalization period in India saw the comeback of Coca Cola but Pepsi had already beaten Coca-Cola to the punch, by creatively entering the market in the 1980s period by course of a vocalise venture. In a way Pepsi benefited the Coca Cola by developing the Indian soft drink market in the early years of liberalization .The only disadvantage was that CCI in 1993 applied the American way of life approach in selling its harvest-feast on the contrary, Pepsi targeted the callowness.(Coca Cola India, 2010)3. The Marketing tools The Marketing Environment3.1-The Macro Environment- PEST Analysis of Coca Cola(P)OLITICAL synopsis-Political variables form very little effect on the CCIs selling and pr oduction behavior. There be few exceptional things comparable the environmental protection laws they more or lesswhat effect the industry of coca sess. The severalise government of Kerala released a report on March 22, 2010 holding Coca Cola responsible for causing pollution and water depletion in a state of Kerala and made it liable for Indian rupees 216 corer for damaged caused as a result of the companys bottling operations.To deal with this line of work the company has made proper adjustments in plant and applied the proper way of wastage management. The companys production overly gets effected by the alternatives and military take over because in the twenty-four hour period of election any countries production in any field is declined.(E)CONOMICAL ANALYSIS-Inflation in any country is not good from its production point of view. So, coca cola is no exception. Its imp encounter on coca cola is extremely negative. In a country like India where thither is a soaring rate o f unemployment, CCI directly employs approximately 6,000 people and indirectly creates employment for more than 1,25,000 people in related industries. Its among the countries top investors having invested more than US$ 1 billion in India in the first decade and further promise an antithetic US$ 100 billion in 2003 for its operations.(S)OCIAL ANALYSIS-CCI in alliance with the NGO, Bharat Integrated affable Welf are Agency (BISWA) has launched a program to shape in awareness on micro-nutrient malnutrition (or Hidden Hunger) in the bottom of the socio economic gain population in India.They are constantly working to keep their product environmentally and genially beneficial to the communities they serve. Their community water programs are knowing to support healthy watersheds and sustainable programs to balance the water used end-to-end their production process. CCI has been awarded the Social and Corporate Governance Award for Best Practices in Corporate Social Responsibility in 2009.All India Division COBOs are now ISO 14001 certified.(T)ECHNICAL ANALYSIS-The CCI uses the more advanced technology in its production process. Computers assume become the basic needs these days and it is giving the way of other industries to come to immature technologies and into a new world of business. Computers can enlarge the efficiency of its business and the latest coke vending machine ordain now employ the use of (user friendly) touch screen technology.SWOT ANALYSIS OF COCA COLA(S)TRENGTHSBrand Ambassadors-focused target marketing by ingress take into account brand ambassador for the target market.Diverse Product Portfolio. super Recognizable Brand.Improved Quality Control.Heavy Investment.Bottling System.(W)EAKNESSESSReduced Consumer Purchasing Power.Issues for surfaceness Care.Environmental Destruction.(O)PPORTUNITIESTo serve a large geographic diverse sports stadiumBrand recognitionSponsorships(T)HREATSSubstitutesHeath ConsciousnessConsumer preferencesStif f Competition3.2-The bitty Environment The micro environment represents those elements over which the marketing firm has broad control in smart set to reach its target market i.e. the 4 Ps, which it can use in order to gain information that exit better help it in its marketing operation.MAJOR COMPETITORSCoca cola major competitors is Pepsi as its portfolio includes-PEPSI7UPNIMBOOZMIRINDASLICEMOUNTAIN DEWAfter CCI it covers the 2nd largest market share % of the soft drink industry in India (Pepsi Co India, 2010)Consumer Behavior-The two factors that dictate the Consumers decision-making process are involvement and perceived risk. The consumer pass on attach to the habitual decision making steps while purchasing coca cola.Habitual decision MakingProductCoca Cola direct of Involvement impression ( unimportant decision )Perceived RiskLow ( simple , low-cost product )Information ProcessingRespond to environmental cues ( shop signage or displays )Learning ModelBehavioral learning ( ad shows product in beautiful setting , creating positive attitude ) involve Marketing ActionProvide environmental cues at point of barter for , such as product displayFig 4.2 extended problem solving versus habitual decision making(Solomon, Marshall, Stuart, Barnes and Mitchell, 2009, Pg151)In India the perception of the people regarding coca cola is that, they consider it as a drink which can quench their thirst as well as creates a disposition of belongingness. Indias physical environment is suitable for the sale of soft drinks moreover during snappy time sales are doubled. Thus the need of buying a soft drink falls in the first and third level of Maslows Hierarchy of Needs (Exhibit 1.)Situational InfluencesPhysical environmentTimeInternal Influences intuitionMotivationLearningAttitudesPersonalityAge groupsDecisionProcessLifestylePURCHASESocial InfluencesCultureSubcultureSocial classGroup membershipsFig 4.4 Influences on Consumer Decision Making (Solomon, Marshall, Stuart, B arnes and Mitchell, 2009, Pg151)SOCIAL MEDIA NETWORKS-Different aspects of well-disposed media, which CCI uses in order to give-up the ghost with its consumers.This in turn will make up Brand awareness dogmatic image for the brand4 THE ORGANISATION MARKETING MIX-4.1-PRODUCT-http//www.coca-colaindia.com/media/images/brand_logos_all.gifMajor Brands of Coca Cola-Coca ColaDiet cokeThumbs UpSpriteFantaLimca second Maid Pulpi OrangeMaazaKinleyMinute Maid Nimbu FreshGeorgia hit the roofhttp//cdn.i.haymarket.net.au/Utils/ImageResizer.ashx?n=http%3A%2F%2Fi.haymarket.net.au%2F brand-news%2FCoca-Cola+India.jpegw=460The product strategy includes decisions such as product design, packaging, branding, and so onCoca Cola brand consists of different packs and flavor.They promote all brands easy in brand pack under their product strategy.4.1.1-Packing Strategy Coca Cola products are obtainable in different packing, in order to capture each and every segment.GLASSPETCAN leak200ml, 300ml, 500ml ,1000ml500 ml, 1.5 L,2 L ,2.25 L,300 ml + 100 ml330 mlVarious Sizes4.1.2 -THE STRATEGY PLANNING PRODUCT EMPHASIS be PRODUCTS rising PRODUCTExistingMarketMarket penetration strategy(Coca Cola)MarketEmphasisSeek to increase sales of animated products to existing marketsProduct development strategy (New Launches e.g. Burn) render harvest-time by selling new products in existing marketsNEWMARKETS Market development strategyIntroduce existing products to new markets diversification strategyEmphasize both new products and new markets to achieve growthFig 2.4The Growth Strategies (Solomon, Marshall, Stuart, Barnes and Mitchell, 2009, Pg 70)New Launch- CCI launches Burn, Minute Maid Nimbu Fresh and Maaza milklike Delitehttp//popsop.com/wp-content/uploads/maaza_milky_delite_01.jpg httphttps://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgQo5VBwrNJZ5OrRWxVhGgL2U_MJWnfG2FUo3CDRHRN5gLlXFqvm66nRJPz3akylJbMxtS2BQHE6DKK2bJZw2RzGI-fxOdBNjbZAk_gUy2Q4GDX0zMPN1jwwte-MDD8Cc8jrLJU4DCCP5eP/s1600/burn.jpg http//www.tribuneindia.com/2010/20100409/ls15.jpg4.2- PRICE-Firms Pricing Strategies should be based on costs, demand or t he prices of competing products.CCI, some time back, had initiated the first cola price war by entree small 200ml packs priced at Rs 5. On the other hand its competitor Pepsi India also reduced its prices of 300ml pack from Rs.8 to Rs. 6. CCI was able to reduce its price from Rs 7 to Rs 5 because it acquired a big glass bottle manufacturing facility which enabled it to offer small bottles at reduced process.PRICE STRATEGY- distinguishable PRICE IN DIFFERENT SEASONIndia is a country with diverse season, summer season is vatical to be a good season for beverage industry. During winters they reduce their prices to moderate their sales and profit.They usually reduce the prices of their pet bottles or 1 lot glass bottle. Even during festivals they offer different price schemes.4.3-PLACE-4.3.1DISTRIBUTION STRATEGY-Events- Cricket Matches, FIFA humankind Cup, World Cup Hockey, popular Wealth Youth Games, Cultural Festivals, Concerts and so onUrban Distribution NetworkConsumerRetaile rSpokeHubsBottling Plant pastoral Distribution Network4.3.3-CCI KEY LOCATIONS(Coca Cola India, 2010)4.4- PROMOTIONCCI follows the Pull forward motion strategy Coca Cola is the official beverage partner of the Common Wealth Games 2010 (CWG), because of which it enjoys exclusive marketing and supply rights for the beverage across its portfolio. CCI has undertaken the largest ever free product sampling program called Delhi celebrates a cultural feast where 5000 artists will perform. The companies association with the commonwealth games will provide the opportunity to kick upstairs its brand value. These games will help consumers in connecting with the brand. When product is seen more in the market, they have good sales too because according to the experts the product which is seen more in the market sell more too.Types of Media which CCI uses Print MediaPosters and Stickers MaterialTV Commercials (TVCs)BillboardsHoldingsBannersCelebritiesGetting shelvesSales promotionPlacing the pr oduct at an eye detection position in the shopsUTC scheme (Under the crown scheme)To keep the products in nice condition, company provides-Freezers, display racks, etcFacebook, Twitter, MySpace, YouTube, etc- CCI have their own and separate brands study on these social networking sites, where they directly gets the opinion of todays generation about the existing and new products.http//htmlimg2.scribdassets.com/7lva67i2vf9rsu8/images/19-f744e60085/000.jpg(Google, 2010)5. THE SEGMENTATION, TARGETTING AND POSITIONING STRATEGY-5.1-SEGMENTING STRATEGY CCI focuses on Demographic segmentation1. generational marketing CCI targets the youth of the country. Coca Cola started using Indian substructures in order to appeal the Indian customers. They wanted to communicate with the youth. Considering that the Indian youth respected traditional Indian values coca cola created advertisements demonstrate college students valuing their culture. This connection helped coca cola in creating its ow n personality with which Indian youth could relate itself and it resulted in the suitable positioning of the brand.2.Gender- CCI have different product range for different genders like for males there is Coca Cola, Thumps up, for females they have Fanta, for kids they have Maaza.3. Rural Market- The majority of Indian population i.e. (74%) lives in many villages scattered throughout the country. Estimates show that country India accounts for 58% of Indian hobnailed disposable income and 41% of middle class.5.2-TARGETING STRATEGY Coca Cola commercials essentially target on young generations, because they want to represent Coca Cola with the youth and energy.Rural Market is also a very pleasing target-In order to reach to the rural India, CCI had also launched television commercials targeting at rural population. This market covers 80% of Indias new coke drinkers.5.3 -POSITIONING STRATEGY CCIs green light in Indian Market-5.3.1- Urban India-In order to target the metropolitan ar eas and large town audience, CCI captured the theme of Celebration and Joy of peoples, they showcases increasing social and economic status of the people in their television commercial (TVCs). This theme they applied for positioning their brand in urban market. Life ho toh aise (life as it should be) was very popular and successful tagline.5.3.2.-Rural India-Under it they have tapped the local entertainment like fairs and local festivalsThey increased their TVCs on Doordarshan (the local seam), intentional to target rural customers.Its all rural marketing initiatives were well support by TVCs.In 2002 CCI launched Chota Coke (Mini Coke) at Rs 5considering the pocket size of rural consumers.CCI communicated this price cut message with the help of TVC featuring leading Hindi movies star Amir Khan in rural settings to enable proper brand association because large number of people inspire to emulate these celebrities. It will help in creating the right identity for the brand.Its taglin e gained a lot of popularity Thanda Matlab Coca Cola (Cold Means Coca Cola)(You Tube, 2010)http//www.thaindian.com/images/stories/aamircoke.jpgExhibit Thanda Matlab Coca-Cola Advertising Campaign6.-RECOMMENDATIONS-New Strategy- Rural market (MARKET IS CREATED AND NOT BORN)Rural consumers are inclined more towards the home made drinks like Lassi, lemonade etc. So, we need to target them when they are out of their home and will need something to quench their thirst.Rural India with the add up income of Rs 100/day, consider coca cola whose average price comes slightly Rs 10, as a luxury product .Moreover soft drinks categories are undifferentiated in the minds of rural consumers. The good news is that the rural consumer market which grew 25% in 2008 is expected to reach US$ 425 billion in 2010-11 with 720-790 million customers.1. As this market is not fully utilized, there lays a spacious scope to reposition the brand in a more hard-hitting way to prove that CCI is the suitable br and meant for rural customers and there is a need to shift it from luxury item category to every day product category.2. An appropriate marketing strategy is required, which is only possible by listening to consumers needs and requirements.Advertising Strategy-Looking at the tough competitors there is a need for aggressive marketing campaign.Announce a new campaign for CCI.In order to connect with the rural population, CCI should increase social welfare activities.Prior creating the ad ,following points should be kept in mind-Selecting an appropriate brand ambassador with which the rural population could relate itself with.Brand promotion by targeting folk and traditional culture.To think local we have to act local.Distribution Strategy-There is a need to extend CCIs distribution channel especially in rural sector.Creating an Extended Distribution channel available all over India, it will provide support to TV commercials. mark Strategy-There is a need to restructure the communicati on channel, which will bring open and honest views of the people (public, media, employees, suppliers, state and national government, channels). It is the only solvent to resolve the issues in a way that it benefits the Indian consumers as well as CCI.