Coca Cola in India
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STUST
Intrernational Marketing
FOCUS NANTAI
Anissa
Emil
Jessie
1. Introduction
• Coca-Cola is a carbonated soft drink sold in stores,
restaurants, and vending machines in every country except
Cuba and North Korea
•Originally intended as a patent medicine when it was invented
in the late 19th century by John Pemberton
•Based on Interbrand's best global brand 2011, Coca-Cola was
the world's most valuable brand
1. Introduction
•The Coca-Cola Company is an American multinational
• beverage corporation and manufacturer, retailer and
marketer of nonalcoholic beverage concentrates and syrups,
which is headquartered in Atlanta, Georgia The company is
best known for its flagship product Coca-Cola
•Coca-Cola currently offers more than 500 brands in over 200
countries or territories and serves over 1.7 billion servings
each day.
2. Case Description
•
•Despite of being one of the most known brands in the world
Coca Cola had and still has problems in India
•Coca Cola entered in Indian market in 1972 but
shortly after in 1974 left the market.
•To take advantage of that huge market Coca Cola reentered
in Indian market in 1994 and acquiired local soft drink
brands
•.Coca Cola’s new plant started to drying up water wells
and polluting the water of locals
•In 2002 India had Anti Coca Cola movement and the
company had to close their new plant in which they invested
12 million US$
3. Questions and Answers
•Q1: What should Coca Cola do to appease Indian government and
ensure it’s survival in the market?
• Coca-Cola had a controversial relationship with Germany before
and during World War II In 1936, Coca-Cola was deemed
unsuitable for children due to its sugar content and additives.
•A division of the company continued to operate in Germany during
the war, but were unable to import the syrup needed for production
of Coca-Cola from the United States
•Fanta, a product developed in Germany due to shortages of
supplies to make Coca-Cola, was merged into the Coca-Cola
brand line following the end of the war
3. Questions and Answers
•Q1: What should Coca Cola do to appease Indian government and
ensure it’s survival in the market
•Since studies indicate "soda and sweetened drinks are the main
source of calories in American diet,most nutritionists
advise that Coca-Cola and other soft drinks can be harmful
if consumed excessively, particularly to young children
•The drink has also aroused criticism for its use of
caffeine, which can cause physical dependence
•llegations against the company are varied and criticism has been
based around; possible health effects of Coca-Cola products, the
company's poor environmental record, perception of the companies'
engagement in monopolistic business practices, questionable
marketing strategies and violations of intellectual property rights
3. Questions and Answers
•Q1: What should Coca Cola do to appease Indian government
and ensure it’s survival in the market
•Since The company know their weakness they should adopt strategy with
different approach and try first to “give” then “take”
•They should invest in Indian enviroment, quality of life and local comunity
•If it’s know that Indian have a water probles and that Coca Cola have
problem because of the same reason they should invest alone or with a
government in improoving of water supply system
•Besides there are a lot of other examples of supporting local comunity (
building schools, supporting culture, improving infrastructure)
•They should help and support the people because now they are considered
as the enemy of the country
3. Questions and Answers
•Q2: What effect will this case have on Coca Cola’s operations
in India
•Unfortunately Coca Cola don’t have a bright status in India
because of their mistakes in India
•That means that their each step would be under special
attention of the people, watchdog, international
organizations and Indian government
•They don’t have right to do mistake again
3. Questions and Answers
•Q2: What effect will this case have on Coca Cola’s operations
in India
•The Coca-Cola Company has invested nearly USD 2 billion in its
operations in India since its re-entry back into India in 1992. The
Coca-Cola system in India directly employs over 25,000 people
including those on contract. The system has created indirect
employment for more than 1,50,000 people
•The beverage industry is a major driver of economic growth. A
National Council of Applied Economic Research (NCAER) study on
the carbonated soft-drink industry indicates that this industry has
an output multiplier effect of 2.1
•Coca-Cola in India is amongst the largest domestic buyers of
certain agricultural products.
3. Questions and Answers
•Q3: What lesson do this case have for other multinationals
that want to enter to Indian market
•Coca Cola is certainly good example what to DO and what
NOT to do.
•India is indeed sensitive market and many MNC’s had and
still have problems in Indian market
•India still doesn’t have good and powerful infrastructure and
the people are sensitive and suspicious to the MNC’s
•Therefore, strategy should be: FIRST GIVE –
THEN TAKE
3. Questions and Answers
•Q3: What lesson do this case have for other multinationals
that want to enter to Indian market
•For multinationals, the key to reaching the next level will be
learning to do business the Indian way, rather than simply imposing
global business models and practices on the local market. It’s a
lesson many companies have already learned in China, which more
multinationals are treating as a second home market
•A leading beverage company entered India with a typical global
business model—sole ownership of distribution, an approach that
raised costs and dampened market penetration. The company’s
managers quickly identified two other big challenges: India’s
fragmented market demanded multiple-channel handoffs, and labor
laws made organized distribution operations very expensive. In
response, the company contracted out distribution to entrepreneurs,
cutting costs and raising market penetration.
3. Questions and Answers
•Q3: What lesson do this case have for other multinationals
that want to enter to Indian market
•A big global automobile company has become the one of the largest
manufacturers in India, growing at a rate of more than 40 percent a year
over the last decade, by building a local plant, setting up an R&D facility to
help itself better understand what appeals to Indian customers, and hiring a
well-known Indian figure as its brand ambassador.
•To realize India’s potential, multinationals must show a strong and visible
commitment to the country, empower their local operations, and invest in
local talent. They must pay closer attention to the needs of Indian consumers
by offering the customization the local market requires.
•And multinational executives must think hard about the best way to enter
the market. More and more, that will mean moving beyond the joint-venture
approach that so many have adopted and learning to go it alone.
4. Current Situation
•The Coca-Cola Company (TCCC) is a leading manufacturer,
distributor and marketer of non-alcoholic beverage
concentrates and syrups, in the World.
•Business-Week and Interbrand, a branding consultancy, re
cognized Coca Cola as the number one brand in their top 100
global brands
•Joint venture with Nestle resulted in the formation of
Beverage Partners Worldwide
•More then 70% of revenue comes from outside the
UnitedStates
•Enormous number of loyal customers and brand equity all
over the world
4. Current Situation
• New coke formula leading toa backclash which resulted
inbad image of coke
•The company is fcing highburden of external debts for the
last few years.
•In 2009 because of the dispute over wholesale proces of COca
COla goods, COSTCO blocked the replenishment of their
shelves with Diet coke and coke
4. Current Situation
••Coca Cola and its bottling partners will invest $5 billion in India by
2020 as it looks to raise its presence in one of its fastest-growing
emerging markets
•India, a country of 1.2 billion people, remains one of the last big
frontiers for the Atlanta-based beverage giant, Indians on average
consume only 12 eight-ounce bottles of Coke a year compared with
230 in Brazil and 92 bottles globally.
•The company plans to spend the money increasing capacity at its
Indian bottling unit and at its 13 bottling franchisees, expanding
distribution and brand building
•
THANK YOU FOR YOUR
ATTENTION
FOCUS NANTAI