Coca – Cola in India International Marketing, 01.04.2013

Coca – Cola in India

RAM Team, GMBA, MA1N0103 陳乃華MA1N0206 Anja IšekMA1N0245 Michel Sung

International Marketing, 01.04.2013.

AGENDA

Introduction of the Case study Case description Conclusion Current situation Case questions and Discussion


AGENDA



Introduction of the Case study


• The Coca-Cola Company is the world's largest beverage company and is the leading producer and marketer of soft drinks.

The success of The Coca-Cola Company revolves around five main factors:– A unique and recognized brand - Coca-Cola is among

the most recognised trade marks around the globe– Quality - consistently offering consumers products of

the highest quality– Marketing - delivering creative and innovative

marketing programmers worldwide– Global availability - Coca-Cola products are bottled

and distributed worldwide– Ongoing innovation - continually providing

consumers with new product offerings e.g. Diet Coke (1982), Coca-Cola Vanilla (2002).

AGENDA



Case description


• 1977 Coca-Cola was forced to exit India (Indian government demanded 60 percent of revenue)

• 1994 is coming back on Indian market

• Company bought local Cola and soft drinks brands (including Tumbs Up – with 59% market share and develop distribution network)

Case description


• The Coca-Cola bottling plant in Plachimada has shut down in 2004 as a result of the community-led campaign in Plachimada challenging Coca-Cola’s abuse of water resources (water pollution and extreme water shortages)

• Government of Kerala in India has recommended that Coca-Cola is responsible for US$ 48 million for damages causedAfter accusations

Coca–Cola lost millions in Indian

market

AGENDA



Conclusion


• Inspite of accusations and threats for suing, Coca–Cola dind’t gave up of second largest population

They stayed on Indian market even though it’s recorded 11 percent drop in sales

AGENDA



Current situation


• The Coca-Cola Company has developed a beverage process water recovery system in India and Mexico that can reduce a manufacturing plant’s water use by up to 35 percent

• Protests against the Coca-Cola company in Mehdiganj continue to grow. The groundwater resource in Mehdiganj cannot meet the needs of both the community and the Coca-Cola’s bottling plant. One has to go, and it must be the Coca-Cola company.

Current situation


• Now, Coca-Cola and PepsiCo together dominate the market for carbonated soft drinks in India, where soda sales overall are estimated to total 60 billion rupees ($1.05 billion)

• Coca-Cola accounted for 60% of retail value sales of carbonated soft drinks in India in 2011 versus PepsiCo's 37%

• India has been one of Coca-Cola's fastest-growing emerging markets

• The investments by Coca-Cola in India are part of a plan to spend $30 billion to build capacity and on marketing in emerging economies to fulfill its aim of doubling revenue and volume by 2020.

• according to data from Euromonitor International (http://online.wsj.com/article/SB10001424052702304870304577490092413939410.html)

Further research: what is the political environment of India

nowadays?


• Democracy is the central point of the Indian political system, but is often limited by social tensions due to religious, caste, and linguistic differences

• During 2010 to 2012, corruption issues came to the headlines due to irregularities concerning the Commonwealth Games, the 2G spectrum awards, and the dubious allocation of coal blocks, which led to high level investigations and arrests. These allegations and scams have tarnished the image of the today's government.

Further research: what is the political environment of India

nowadays?


AGENDA



Case questions and Discussion


1. What should Coca Cola do to appease Indian government and ensure it’s survival in the market?

• To appease the Indian Government and ensure its survival in the market, Coca has to change his image of a company which pollute and waste water of India. Coca has to regain trust of their customers. It must happen through several actions as:

• Corporate social responsibility initiatives:

– Water• Reduced water consumption• Improve the lively hood• Rainwater harvesting project

– Energy• Reduce emissions of • Energy consumption• Energy efficiency

– Fuel• Local operation in each

country– Packing & Recycling

• Recycling• 3 R : Recovering / Reduction /

Reuse



• Cooperation with CSE

– CSE : Center of science and environment• Strong power as well as

other Non-Governmental Organization

• Press attacked by CSE : Pesticides found in samples

– Cooperation better than attacking the CSE

– Public apologies for misconducting research

• Public relation campaign

– Promotional activies / Discounts

– Keep Media presence– Marketing efforts– Donation money to charity

• Quality Brand board

– Members of Coca cola + CSE experts

– Holding Coca Cola quality standards



2. What effect will this case have on Coca Cola’s operations in India?

This case affects the profitability, the corporate reputation and Image:

• If customers believe that Coca products are unsafe, it will affects the brand image and the revenue

• If consumers got ill because of Coca Cola, it would seriously affect revenues.

• When allegations from CSE were released , stock of Coca Cola dipped by 5$ in the NSE and sales dropped 30-40%



3. What lesson do this case have for other multinationals that want to enter to Indian market?

• Indian’s population and NGO have strong power• Local government have strong impact, even on

big companies as the leader of soft drink : Coca Cola

To have good relationship with government form beginning

To Have Cooperation with CSE Make public relation campaign

THANK YOU FOR YOUR

ATTENTION!

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Coca – Cola in India International Marketing, 01.04.2013